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![sector of the urban economy. National governments and
donor agencies have recognized this fact by increasing
their support for small scale enterprise activity through
micro finance programmes and other innovative vehicles
such as incubator programmes.
In addition to creating employment, the SSE sector is
valued as a source of ingenuity and vitality, which in turn
influences urban communities beyond the realm of
economics. With the exception of housing, the ‘where’,
‘how’ and ‘why’ of SSE activity constitute the most
important factors in determining how urban space and
resources are used. It is therefore reasonable that the SSE
sector plays a greater role in new approaches to urban
planning.
In the area of environmental practices, many SSEs show
great resourcefulness in minimizing waste and in recycling.
Small operating budgets have made it necessary for
entrepreneurs to find ways to make ends meet, and this
invariably means making the best use of resources and
limited space. Moreover, most urban centres in the
developing world have active SSE sectors that provide
services in the areas of waste collection and recycling. In
some cities, the informal sector outperforms municipal
governments in waste collection. [Ali and Ali: 1993]
Yet, not all is environmental perfection with SSEs. In fact,
there are a vast array of environmental problems
associated with urban SSEs. There are far too many SSEs
in a variety of sectors — from tanning and electroplating
to artisanal activity — that can be the source of significant
negative environmental impacts on local communities.
The diversity, changing nature and growing number of
urban SSEs create an enormous array of environmental
challenges, both in terms of understanding and choosing
appropriate remedial methods.
Most often SSEs operate in surroundings characterized by
inadequate housing, transportation, water and sanitation
infrastructure, and health facilities. Cluttered streets, alleys,
commercial parks and inappropriate building space —
such as individual homes — often become makeshift
workplaces that can create unsafe conditions for workers,
family members and the broader community. It is within
the context of the precarious existence of SSEs that
solutions to environmental problems must be found.
Given the social and economic importance of SSEs, the
emphasis must be on introducing corrective measures to
reduce negative environmental impacts, and to ensure
that SSEs are at the centre of strategies which address
broader problems impacting on the urban environment.
Urban SSEs operate in an environment that can
experience rapid change through the adaptation of new
ideas and technologies. This dynamic provides a great
opportunity to create more sustainable patterns of
economic activity that can impact upon both the
entrepreneurial milieu and other aspects of urban life.
Finally, it is important to stress that making a stronger link
between the environment and SSE activity is not solely
about environmental standards. Efforts in this area should
be a part of a larger agenda to alleviate poverty, by
increasing and diversifying economic opportunities, and by
improving infrastructure, workplace and housing
standards. It is the intention of this document to
demonstrate how this is possible.
1.2 A Changing Development Context
and the Rational for this Document
Reinventing the City: The Role of Small Scale Enterprise is
designed to outline the conditions and factors that allow
small scale enterprise to play a larger role in improving the
living and environmental standards of cities. The
document highlights ideas, innovations and practices that
are realistic from a technical, economic, political and social
standpoint. A broad variety of options are presented on
how to incorporate small scale enterprise into schemes to
improve the physical environment of cities and eliminate
related conditions contributing to poverty. An important
theme of Reinventing the City is presenting solutions to the
environmental problems created by SSEs.
It would have been useful in developing this publication if
a vast array of information and project experience had
been available. This, however, was not the case.
Nevertheless, an extensive effort has been made to
collect and present as many key case studies as possible.
This document benefits greatly from the knowledge and
insight emanating from related spheres of activity, where
refinements and the emergence of new approaches are
creating new options for working with entrepreneurs,
workers, community groups and governments.
Reinventing the City: The Role of Small Scale Enterprise
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![In the economic sphere, a great deal of knowledge and
experience has been accumulated in recent years on how
to assist SSEs. Micro finance, the practice of providing
small loans to individuals and community groups, has
opened up new possibilities for assisting the poor in
initiating and enhancing economic activities for their own
benefit. In addition, experiences with business incubator
programmes and related business services have shown
how cost effective instruments can be used to create new
enterprises, protect struggling ones, and introduce
technological change.
The renewed interest in participatory development, due
largely to the emergence of Participatory Rural Appraisal
(PRA), is setting new standards for development projects.
This emphasis on participation, combined with more
fundamental attempts to make governments more
democratic, accountable and responsive, has created the
possibility of tapping into previously under utilized sources
of collective and individual knowledge and skills.
Improvements in technology in a wide variety of areas,
such as renewable energy and the transportation sector,
are creating other possibilities. Yet the most important
development related to technology has been the shift in
thinking, from placing emphasis on the technology itself, to
understanding how technologies can be more successfully
integrated into the activities of family, community and the
workplace.
Although not traditionally focused on the SSE sector, the
field of occupational health and safety (OHS) offers great
insight on how changes can be made in the workplace to
improve safety standards and protect the environment,
while improving economic performance. Pilot activities,
undertaken by organizations such as the ILO, have
demonstrated an enormous potential to work with SSEs
to improve OHS standards.
Also, donor agencies such as CIDA are placing a greater
emphasis on developing practical tools and modifying
established practices for a more sustainable impact (e.g.,
environmental assessment to ensure that small scale
development activity is properly managed from an
environmental standpoint). The collective result of these
experiences is that much more is known about how to
work with individuals, communities, entrepreneurs and
local government to facilitate change.
1.3 Regarding the Content of this
Publication
It is important to underline a few key points concerning
this document. For reasons of expediency and focus,
Reinventing the City does not examine the role played by
SSEs in recycling and waste management. This subject is
relatively well documented and analyzed in a number of
publications [see Fernandez: 1997, Haan et al.: 1998 and
Furedy: 1990b]. Although much can be learned from the
experience of SSEs in this field, other topics and issues
need to be addressed to provide a more comprehensive
overview of the interrelationship between the urban
environment and SSEs, and the possibilities to promote
change. Nor will the use of command and control
legislation to police the activities of SSEs be explored.
Many would argue that the focus of this document should
be on the applicability of environmental measures,
regulations and controls. However, in the context of the
largely unregulated urban economic process in which SSEs
operate and flourish, it could be argued that the emphasis
should be on working with the possibilities provided by
this very situation. Despite a few notable exceptions, the
experience to date with regulation and enforcement of
SSEs has been overwhelmingly negative. Until local
governments are in a position to ensure adherence to
environmental standards in a judicious and effective
manner, the emphasis should be on working more
collaboratively, and finding other means to put pressure on
SSEs to adhere to better environmental practices.
1.4 Chapter Outline
In addition to introductory and concluding sections, this
document is organized into four main content chapters:
Chapter 2: Working in the City
To better understand the SSE sector, this chapter presents
information on statistics and trends regarding the place of
SSEs in the urban economy. The SSE sector is examined
in relation to housing and transportation practices and
standards, trends, spatial arrangements, and local
government resources and capacity. The chapter
concludes with an examination of the environmental
impact of SSEs in terms of resource utilization, and the
sector's contribution to pollution, overcrowding and the
faltering infrastructure of cities.
Reinventing the City: The Role of Small Scale Enterprise
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![2.0 Introduction
The very apparent pollution, squalidness, poverty and
breakdown of services found in cities in developing
countries can easily shape negative sentiments about what
it must mean to live and work in such conditions. Cities
in developing countries can be awful places because of
these problems, but this does not tell the whole story.
They are also highly animated, full of life and vigour. Much
of the credit for this goes to the SSEs filling the streets,
alleys, markets, parks and buildings. A late evening traveller
to Dhaka, Lahore, or other South Asian cities, is struck by
the noise and vivacity of the commercial activity
emanating from the streets and other SSE workplaces.
On market day in countless African cities, the limits of the
transportation system and infrastructure are quickly
tested as the volume of commerce swells.
The resonating character of these cities is not the creation
of city managers and planners. As will be demonstrated
in this chapter, established planning grids and
neighbourhood designs have largely been ignored by
people to permit a more interactive and practical
relationship between the home, common space and
entrepreneurial pursuits. As such, SSEs tell us a great deal
about how urban centres could be designed differently.
Clearly, small scale entrepreneurial activity is not the only
factor that comes to define what cities are, but for a large
percentage of the urban population it is a major element.
This chapter attempts to provide insight into the
environmental, cultural, social, political and economic
dynamics shaping the character and extent of small
enterprise in cities. To help set the stage, the chapter
begins with a brief examination of some findings and
reflections related to the economic importance of urban
SSEs.
2.1 The ‘Survival Economics’ of Urban
SSEs
Below are a series of summary statistics and observations
regarding urban SSEs. They provide an interesting, if
occasionally contradictory, portrayal of the sector. Certain
of the points raised here will be elaborated upon in
subsequent sections of this document:
• Most enterprises categorized as urban SSEs are very
small. In a study of African SSEs, the majority were
classified as one-person operations. [Mead and
Liedholm: 1998, 62] Yet some SSEs can employ large
numbers of workers. Informal waste collection and
recycling operations are good examples of this.
• A large percentage of SSEs are home based
enterprises.
• The percentage of the urban population finding work
in the SSE sector is growing. The Asian Development
Bank (ADB) reports that three-quarters of all new
jobs in South Asian mega-cites are created by the
informal sector. [ADB: 1999, 38] A World Health
Organization (WHO) study found that 45%–95% of
the workforce in developing countries can be found
in small factories and related industries. [reported in
McCann: 1996]
• Although the majority of urban SSEs are engaged in
non-productive activity, there is a significant minority
involved in productive activity best described as
industrial.
• "In most countries the majority of (SSEs) are owned
and operated by women. Furthermore, since working
proprietors are the single largest category of the
labour force, the majority of workers are women."
[Mead and Liedholm: 1998, 64]
• Studies indicate substantial differences in economic
efficiency by enterprise size. In particular, the "returns
per hour of labour are significantly higher for
enterprises with 2-5 workers, compared to those
with one person working alone. This increase in
economic efficiency continues for the next higher size
group, those with 6-9 workers; thereafter, the results
are more ambiguous."
[Mead and Liedholm: 1998, 64]
• "(SSEs) are in a constant state of flux. During any
given period, new firms are being created (new starts,
or enterprise births) while others are closing; at the
Reinventing the City: The Role of Small Scale Enterprise
5
Chapter Two Working in the City](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-12-320.jpg)
![same time, some existing firms are expanding and
others are contracting in size. Since these individual
components of change can move in opposite
directions, figures on net change mask the magnitude
of the churning that takes place."
[Mead and Liedholm: 1998, 64]
• The overall contribution of SSEs to Lao's Gross
National Product (GNP) is between 6-9%. [Daniels:
1999, 55] In a nationwide survey of Kenya, urban
SSEs were found to provide 50% of family income;
18% of SSEs provided all the household income.
[Daniels: 1999, 59] "One-third of all working persons
are employed in SSEs and the sector contributes 13%
to Kenya's Gross Domestic Product." [Daniels: 1999,
63] In Guatemala, it is estimated that the urban
informal economy accounts for 34% of the country's
GNP. In 1960, the informal sector accounted for only
5% of Guatemala's GNP.
[Villelabeitia: 2000]
• A study of informal enterprises in Nigeria
demonstrated that informal enterprises rarely have
written down conditions of work or fixed working
hours. [Faphounda: 1985, 79] Informal enterprises
have variable hours of operation, usually running for
about 11.5 hours every day. Only 4.4% of the
enterprises operated for exactly eight hours a day,
and about 7% operated for less than eight hours.
Even though the enterprises had long operating
hours, they usually worked for one stretch at a time,
rather than in shifts.
[Faphounda: 1985, 81]
• Most SSEs operate at low, often obsolete levels of
technology. However, even in the most advantaged
enterprises, progress can be made in technological
capacity.
[see King: 1996 and McCormick: 1998]
• In India, SSEs "produce crude, low price final products,
which are sold to consumers either directly or
through distribution channels. These firms are
sometimes found to compete with larger firms that
exist in the same industry segment, but which
produce differentiated products, that incorporate
special design features that make it stand out."
[Vachini: 1991, 26]
• Clustering, whereby a large number of enterprises
from the same or related sectors locate in the same
area, is an important phenomenon of the SSE sector.
Clustering occurs for a number of economic reasons
to allow SSEs to achieve economies of scale,and share
technology and labour. Clustering can take many
different forms. Clustering in Asia and Latin America
can be more sophisticated than that typically found in
Africa. [McCormick: 1998] For example, clusters in
Latin America and Asia have been known to become
important centres in the manufacturing of a wide
variety of goods (i.e., from footwear to medical
inputs). [McCormick: 1998, 11] While in Africa,
clusters can consist of thousands of micro enterprises
operating at a very basic technological level.
[McCormick: 1998, 11]
• There can be considerable economic interaction
between SSEs and medium and large scale
enterprises — e.g., SSEs are often relied on to
provide small implements in the production of larger
goods.
• Cultural, social and family considerations can be as
important as economic factors in determining the
location, size and number of SSEs working on or in a
particular street or dwelling. Co-operation and
mutual support can be found within enterprises that
normally one would perceive to be in competition
with one another.
[see Gough: 2000 and Benjamin: 1991]
The contribution of SSEs to the urban economy is
significant and growing. Although statistics vary, the
tendency is towards estimating a high percentage of the
population finding work in SSEs — somewhere between
one-half to three-quarters of the urban workforce. The
major problem in undertaking statistical work on SSEs is
studying enterprises that mostly operate in a clandestine
manner outside the formal economy.
Yet, the most important point to retain regarding urban
SSEs is their role in combating poverty. By supplementing
incomes and creating singular employment opportunities,
SSEs are in many ways a last line of defence against certain
poverty, especially for women. The availability of flexible
Reinventing the City: The Role of Small Scale Enterprise
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![SSE opportunities is of tantamount importance for
women who must also contend with demanding domestic
responsibilities that tend to limit economic options.
2.2 The Home as a Workplace
Home based enterprises (HBEs) are the best example of
the economic convenience afforded by the SSE sector.
The concept of combining living and working space has
been around a long time, including in Europe where it was
very common up until the Renaissance period. This
arrangement served more than economic purposes,
contributing greatly to medieval society by making the
"medieval family a very open unit." [Schoenauer: 1992,
228] Lewis Mumford, one of the earliest critics of modern
urban life, described the European medieval home as
follows:
The medieval family included, as part of the normal
household, not only relatives by blood but a group of
industrial workers as well as domestics whose
relation was that of secondary members of the
family. This held for all classes ... for young men from
the upper classes who got their knowledge of the
world by serving as waiting men in a noble family;
what they observed and overheard at meal-time
was part of their education. Apprentices, and
sometimes journeymen, lived as members of the
master craftsman's family. If marriage was perhaps
deferred longer for men than today, the advantages
of home life were not entirely lacking even for the
bachelor.
[Mumford: 1961, 281]
The separation of the household from the workplace had
a profound and lasting impact on the future evolution of
cities in European countries. In developing countries, the
practice of integrating home and entrepreneurial pursuits
has been kept alive for both economic and social reasons.
It particularly thrives in places where strict rules about
land use are not enforced.
[Medina: 1997]
The home doubling as a workplace reduces costs. It
affords parents, mostly mothers, the opportunity to stay
close to and care for their children. Gough notes that "in
almost all low income settlements in (developing)
countries, people in HBEs can be seen cooking, sewing,
selling drinks and food, keeping animals, mending and
making shoes, manufacturing various goods, cutting hair,
giving injections, and renting rooms." [Gough: 1996, 95] In
the rapidly growing low income settlement of Madina
Ghana, located on the outskirts of Accra, two-thirds of all
dwellings have at least one HBE. [Gough: 2000] A study
of informal settlements in Port- au-Prince, Haiti,
determined that home based entrepreneurship was so
far-reaching that housing units were treated as places of
production. [Fass: 1977 quoted in Tripple: 1993] In
developing countries, HBEs can be found in middle-class
dwellings, especially in countries experiencing an
economic downturn.
[Olufemi: 2000]
A study of HBEs in a‘Bustee’ (Bengali for slum) community
in Calcutta describes the character of HBEs and how they
come to influence a neighbourhood's character:
• In the bustee, almost all of the homes located near
the main or secondary roads have some kind of small
business activity within their domestic space.
• Some households with interior locations are involved
in (productive) oriented activities like raakhi making,
bidi making, tailoring, agrabatti rolling, etc.. These
activities do not require formal shops for their
distribution.
• A number of shops (home based) selling the same
product can be sustained by high demand. Only
special services shops, such as metal repairs, can be
located away from main roads.
• Given the use of domestic space for HBE activity,
common spaces are shared by families for cooking,
washing and drying clothes, relaxing, playing and
sometimes eating. Thus a very close interrelationship
develops between houses and their spatial
surroundings. Spaces for domestic and income
generating activities exist and interact to the mutual
benefit of the bustee dwellers.
• Bustee dwellers sacrifice ‘living’ quality to a great
extent to accommodate their income earning activity,
since this is important to their survival. Prime space
is given over for income generation. The lack of
proper space forces them to adjust to the existing
conditions as best as possible, often involving
sacrifices in other daily living activities.
Reinventing the City: The Role of Small Scale Enterprise
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![[Ghosh: 1994, 77-79]
Similar to Ghosh's findings, a study in Aba, Nigeria,
determined that "usable space takes precedent over
aesthetics and permanence, and both housing and
environmental quality in terms of construction standards
are of little significance, compared with employment."
[Nwankama: 1993] The drawing in Figure 2.2.1 is an
overview of the Gorcha bustee community in Calcutta,
India, which is the focus of Ghosh's study. Figures 2.2.2
and 2.2.3 are ‘section through’ drawings of two home
based entrepreneurs in Gorcha that established
enterprises in extensions of their homes.
Box 2.1 is an extract from a study of HBEs of a very
different kind, found in the Viswas Nager settlement of
East Delhi. Benjamin uses the term ‘neighbourhood-as-
factory’ to describe the entrepreneurial activity of HBEs
there. [Benjamin: 1991] The experience of Viswas Nager
is significant because it broadens significantly the
perception of what constitutes HBEs, and the role they
can play in building communities. InViswar Nager, a strong,
well organized SSE sector, led by HBEs, worked with local
officials to improve conditions in terms of infrastructure
Reinventing the City: The Role of Small Scale Enterprise
8
Box 2.1 The Home Based Factories of East Delhi
In the East Delhi colony ofViswas Nager, the outward image is of a typical Delhi settlement in various stages of construction —
endlessly reproducing themselves through additions or subdivisions, and hectic movement of people and vehicles along the inner
streets. But these impressions are misleading. Inside the ‘houses’, generally in basements and on ground floors, are factories
reminiscent of the Industrial Revolution. Machines whir in the dim and often dusty light, their operators supervised carefully by
foremen.The cycle rickshaws that must be dodged in the streets are not only transporting people, but also raw copper stock
and semi-finished copper wire among hundreds of small (home based) factories.
The production system of Viswas Nager has developed into a neighbourhood-as-factory — a network of small firms located in
the same area, which both compete and co-operate with each other. There is the pervasive smell of new brickwork and the
noise of machinery in front room shops. Their productivity stimulates the markets and creates job, which leads to even greater
production levels and continues a cycle of successful economic growth.
To observers, its seems impossible that sophisticated manufacturing takes place in such a rudimentary environment. As of 1991,
up to 80% of the city's manufacturing was taking place in such neighbourhood factories. Industries support each other in East
Delhi. Copper wire and cable manufacturing industries depend on secondary manufacturing such as plastic recycling and cycle
rickshaw fabrication.
Although all modes of transportation are used, the cycle-rickshaw is the key. Typically, cycle-rickshaws are hailed from the street
as needed, but some entrepreneurs maintain their own fleet. The differentiated transport system is well suited to the diverse
conditions of the roads within the settlement. While heavy vehicles are efficient for transporting goods on high quality roads,
only cycle-rickshaws and animal driven carts are capable of traversing the narrow, unpaved and flood prone roads located in
sections of the settlement.
By 1991, the colony had a workforce, political strength, a diversified property market and a number of local money lending
associations. Viswas Nager is an example of difficult but successful co-operation between common people and institutions. The
efficiency of the colony's development by increments is a lesson for those who believe that massive public or private
interventions in land and industrial development are necessary for economic progress.
[Benjamin: 1991,4-100]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-15-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
9
Figures 2.2.1. 2.2.2, 2.2.3
Overview of
Gorcha Bustee
in Calcutta
India
[Ghosh, 94]
Section through of two home-based enterprises in Gorcha Bustee [Ghosh, 94]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-16-320.jpg)
![and sanitation.
2.3 Community Space as a Workplace
The first layer of outdoor SSEs are HBEs adjacent to
homes such as in figure 2.3.1 and 2.3.2. Nwankama notes
that in communities such as Aba, Nigeria, where HBEs
flourish, the physical distinction between the interior and
exterior of the home is artificial, influenced primarily by
"climate, the scale and organization of the outdoor space,
and the nature of work and size of the enterprise."
[Nwankama: 1993, 128]
HBEs attached to and surrounding dwellings are part of a
larger network of SSEs, operating in a diverse range of
Reinventing the City: The Role of Small Scale Enterprise
10
Figure 2.2.4
Section through of another home-based enterprise and location in Gorcha Bustee. [Ghosh, 94]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-17-320.jpg)
![outdoor locations and conditions. Some outdoor SSEs
operate with permits from established buildings and
locations in the same way small enterprises operate in
Canada.Yet most do not. Although mostly service oriented,
there can be very large, outdoor SSEs involved in heavy
industrial activity. [Pallen: 1997b] Depending on the degree
of by-law enforcement,any open or free space is a potential
workplace — i.e., alleys, streets, sidewalks, railway lines,
parks, intersections, markets, industrial parks and rooftops.
A study by McGill University’s Centre for Minimum Cost
Housing (CMCH) of two slums in Indore, India,
documented the diverse and complex variations of spatial
requirements needed by an equally diverse assortment of
outdoor work activities: "They varied from as small as 2
square metres, in the case of paper bracelets, to as much
as 36 square metres for the repair and refurbishment of
wooden crates. Some of the activities needed shelter,
others did not. Most required not only a work space, but
also a space for storing either raw materials or finished
products, or both."
[Rybczynski et al.: 1984, 21]
Reinventing the City: The Role of Small Scale Enterprise
11
Figure 2.3.1
In Aba Nigeria, carpenter and
his apprentice use space at side
of house as a work space. The
workplace is highly visible to
passerbys. [Nwankama, 1993]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-18-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
12
Figure 2.3.2
A beedi seller (Indian cigarette) sets up a stall along side a house in Gorcha Bustee
in Calcutta, India. [Ghosh, 94]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-19-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
13
Figure 2.3.3
In Aba Nigeria, an overhead view
of two small shops, a breakfast
joint and used clothes store
alongside a work place. The work
place is used for bicycle repairs.
[Nwankama, 93]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-20-320.jpg)
![There is also the phenomena of mobility: "There are
mobile shops — carts and moveable kiosks — that are
operated by hawkers and peddlers. The distinction
between mobile and fixed shops can be blurred, since
frequently the first stage of establishing a permanent shop
is simply to park a pushcart in one location, and eventually
to upgrade it into a semi-permanent structure."
[Rybczynski et al.: 1984, 33]
Figures 2.3.3, 2.3.4, 2.3.5 and 2.3.6 are drawings from Aba,
Nigeria, demonstrating the variety of uses and shapes of
outdoor SSE space in that city.
To the outsider, the locations occupied by outdoor SSEs
can appear overcrowded and chaotic. The impression is
that nothing has been planned. However, this is most
often far from the truth. In fact, there is usually an innate
logic behind where and how enterprises are located. Post
describes the situation of SSEs operating in the town
centre of Kassala, Sudan, as follows:
An intricate network of interdependency relations has
developed, requiring that members of the same
professional group work at the same place (for
example, butchers, leather manufacturers, gold and
silversmiths, etc.). Tailors use the arcades in front of
fabric shops; retail grain sellers working the street are
near to their wholesale colleagues (where supply trucks
unload); soft drink and fruit juice sellers occupy sites
near the bus terminal; and craftsman are ideally situated
for direct contact with the consumer ... Street traders in
Reinventing the City: The Role of Small Scale Enterprise
14
Figure 2.3.4
Space between a road and railroad is used for block-making in Aba Nigeria.
[Nwankama, 93]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-21-320.jpg)
![particular rely on large streams of passers-by and
depend on small and frequent orders with suppliers. The
importance of mutual proximity has even increased over
the last few years due to the chronic shortage of all sorts
of commodities, making personal contacts and swift
communication vital in order to secure essential supplies.
[Post: 1996, 37]
The type of entrepreneurial networks and clusters
described by Post can be found in various shapes
throughout Africa, Asia and Latin America. From
neighbourhood to neighbourhood and street to street,
SSEs respond to the needs of local residents. At the same
time, cultural and family traditions can also intertwine with
economic factors to influence the shape and character of
streets and neighbourhoods [see Bishop and Kellet: 2000].
Reinventing the City: The Role of Small Scale Enterprise
15
Figure 2.3.5
A wider street in Aba Nigeria is used for metal work and for auto repairs. [Nwankama, 93]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-22-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
16
Figure 2.3.6
Small shops are built behind the railroad at a street intersection where tires, candies, gin and soft
drinks are sold. Places are also available for hair braiding and a food vendor. [Nwankama, 93]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-23-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
17
It is also not uncommon to find a number of women
selling the same goods and services in streets, shops or
homes, in close proximity to one another. This type of
pattern may have more to do with mutual co-operation
and self-support, as opposed to the, by and large,
economic motivation behind clustering. Moreover, with
the absence of such public buildings as community
centres, and in some cases schools and religious buildings,
the premises of SSEs such as tea houses can serve a social
function, by providing people with public meeting spaces.
[Rybczynski et al.: 1984, 33]
Figure 2.3.7
Scene of the daily market in the main passageway of the Gorcha Bustee in Calcutta, India. [Ghosh, 94]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-24-320.jpg)
![The patterns and arrangements of outdoor SSEs have
developed slowly over time and Post appeals to urban
planners to be more appreciative of these ‘self chosen
locations’: "Although chosen under sometimes severe
economic, cultural and physical constraints, they
nevertheless demonstrate the rational of differing
settlement choices. Knowledge of the spatial logic of
survival is essential to the formulation and implementation
of any proactive planning on behalf of small enterprises."
[Post: 1996, 39]
2.4 Transportation and Urban SSEs
Although most entrepreneurs in the SSE sector would
prefer to own a motorized vehicle, the reality is that very
few do, or ever will. A variety of transportation modes are
available to SSEs, yet most rely on non-motorized vehicles
(NMVs). NMVs, such as those found in Figures 2.4.1 and
2.4.2, play an important part in the economic world of
SSEs and, indeed, in the overall economies of developing
countries. In Viswas Nager [see Box 2:1], a survey of
Reinventing the City: The Role of Small Scale Enterprise
18
Figure 2.4.1
NMVs in Asia.
[World Bank, 1995, 9]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-25-320.jpg)
![entrepreneurs revealed that a major reason for their
economic success was the availability and suitability of low
cost cycle-rickshaw transportation.
[Benjamin: 1991, 41]
As the World Bank points out, NMVs such as bicycles,
cycle-rickshaws, animal carts, push and pull carts, are "non
polluting, low cost mobility powered by renewable energy
sources that are well suited for short trips in most cities."
[World Bank: 1995, xii] In some cities and communities,
NMVs can provide the most mobility. In Yogyakarta,
Indonesia, almost 10% of the population live along the
Code River, where access between houses or access
outside the settlement to surrounding communities is
possible only by internal footpaths and narrow streets. In
other words, there is no access into and throughYogyakrta
by car.
[Nareswari: 2000, 3]
Reinventing the City: The Role of Small Scale Enterprise
19
Figure 2.4.2
NMVs in Asia.
[World Bank, 1995, 8]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-26-320.jpg)
![SSEs, like all enterprises, rely on existing transportation
systems to move goods, provide services, and facilitate
other economic activity. Yet today, neglected trans-
portation networks are being refitted to facilitate the
movement of commuters in automobiles, thereby adding
to the problems of congestion and pollution. At the same
time, more realistic and pragmatic approaches to urban
transportation, which consider the needs of all users, are
ignored.
[see UNDP: 1992]
The World Bank [1995, 1] undertook a study of ten major
Asian cities and identified the following trends that impact
negatively on the use of NMVs:
1. Increased motorization (including the increased use
of motorcycles) and a consequent reduction in the
street space available for safe NMV use.
2. Exclusion of NMV needs in urban transport
planning and investment programmes, resulting in
inadequate facilities for NMVs.
3. General trend toward modernization of Asia cities,
which promotes attitudes that NMVs are backward.
4. Tendency to believe that NMVs are the cause of
urban traffic congestion.
5. Increased trip lengths caused by changes in
metropolitan spatial structure.
The World Bank adds:
In many Asian cities there is an apparent bias against
NMVs. Hanoi, Dhaka and Metro Manila are a few
of the cities that have as official policy the reduction
or elimination of NMVs because of perceived impact
on congestion and safety, as well as the ‘degrading
nature of the work required of the operator’ ... the
consequence of anti-NMV biases is unbalanced
transport planning, which results in accommodating
the needs of motorists at the expense of NMV
operators and users. Such unbalanced planning can
actually lead to a deterioration of traffic conditions for
both motorized vehicles and NMVs.
[World Bank: 1995, 59-60]
In Jakarta during the 1980s, roughly 20,000 cycle-rickshaws
were tossed into Jakarta Bay and another 30,000
confiscated by city officials in a effort to eliminate
‘backward technology’. [Gardner: 1998, 16] In some
countries, such as Vietnam, municipal policies have actually
contributed to a reduction in bicycle use. [Gardner: 1998,
16] Recently, the municipality of Rawalpindi, one of
Pakistan's largest cities, banned NMVs in the old town
centre, where the streets are narrow and well suited to
such vehicles.
Such attempts to reduce NMV use seem more
preposterous when one considers that the overall use of
NMVs in Asia is actually growing. [World Bank: 1995]
Not only are NMVs more economical, they are also more
practical in most circumstances. Bicycles trips, for
example, compare favourably with cars for urban trips of
about 2 kilometres. "In Beijing, bicycles are faster than the
bus or subway for trips up to 6 kilometres and remain
competitive with public transportation for journeys of up
to 10 kilometres." [Gardner: 1998, 18] Subsequent
chapters will discuss the efforts of certain municipalities to
capitalize on these inherent advantages to improve and
increase the use of NMVs.
Another aspect of NMVs that is not well known is the
significant amount of small scale entrepreneurial activity
that exists in support of NMVs. NMVs are "labour
intensive modes of transport that rely extensively on the
use of local technologies and skills." [World Bank: 1995,
xii] The World Bank describes the importance of the
NMV sector in Asia urban economies, as follows:
The cycle-rickshaw industry in Dhaka — including
drivers, repair persons, owners, mechanics in assembly
shops, and retailers in components shops — directly
provide 23 percent of the city's employment.
Similarly, approximately 20 percent of the jobs in
Kanpur, India are in the NMV sector, which includes
all employment related to bicycles, rickshaws, animal
carts and handcrafts. To the extent that motorize
vehicles replace NMVs in these cities local economies
will drastically change with consequent dislocation
effects. Nevertheless, the inventory of Asian cities
conducted for this recent study found that local
governments often underestimate the economic
impact of the NMV sector.
[World Bank: 1995, 57]
NMVs would seem to be as natural an ally as local
planners could hope to have in creating employment for
vulnerable groups, providing affordable and accessible
Reinventing the City: The Role of Small Scale Enterprise
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![Reinventing the City: The Role of Small Scale Enterprise
21
... Auto rickshaws number over 3 million, and are
among the largest contributors to poor quality urban
air. They provide passenger as well as goods
transportation and account for a large percentage of
the traffic on roadways. Many of these vehicles are
up to 30 years old and still use leaded gasoline due
to the absence of strict emission regulations and the
owners limited finances. The majority of the vehicles
are poorly maintained and do not employ exhaust
treatment devises. Also, used oils are often added to
agricultural producers while urban dwellers are thought to
engage in industry and services is increasingly misleading."
[Tacoli: 1998a, 3] She goes on to add:
The growing evidence of the scale of and nature of
urban agriculture and of rural non agricultural
enterprises and employment suggests that these
distinctions are over simplified descriptions of both
rural and urban livelihoods. The urbanization of rural
economies and employment structures is also often
transportation, and in reducing pollution and the
overcrowding of cities. The relatively soft clanking of
bicycles, trailers and carts would seem to be a perfect
antidote to overheated and noisy cities.
Two stroke engine auto-rickshaws, scooters and motor
cycles are also very popular in Asia, and probably create a
considerable amount of employment in the SSE sector
through repairs and other services. Yet unlike NMVs, auto-
rickshaws and other small scale motorized vehicles are
notorious polluters. The EnvironmentalTechnology Centre
of Environment Canada describes the state of auto-
rickshaws in Asia as follows:
the gasoline at higher than the manufacturers’
recommendation. The result is higher exhaust
emission rates.
[Environment Canada: 1997, 3]
2.5 The Blurring Distinction Between
Urban and Rural Entrepreneurship
Small scale entrepreneurial activity is a key dynamic in one
of the most significant changes taking place in developing
countries — the eroding distinction between urban and
rural life. AsTacoli points out, the assumption of a sectoral
divide, whereby "rural populations are seen primarily as
The Ferozepur Road in Pakistan. Redefining rural work.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-28-320.jpg)
![most evident in the areas immediately around or well
connected to the urban areas.
[Tacoli: 1998a, 3]
This new reality is best observed in the growing peri-
urban zones surrounding urban centres. In city outskirts,
there can exist a conglomeration of entrepreneurial
activity encompassing industry, agriculture and service
activity. Increasingly, rural and peri-urban entrepreneurs
are operating closer to urban centres to have better
access to clients and reduce transportation costs.
[Werna: 1997, 392] In Pakistan, the 50 kilometre long
Ferozepur Road that joins Pakistan's second largest city
Lahore with the ancient city of Kashur is a case in point.
From Lahore, on both sides of the Ferozepur Road,
entrepreneurial activity dominated by the SSE sector
stretches for well over 15 kilometres. Agricultural activity
is still very apparent from the road. [Pallen: 1999] It is not
unthinkable that one day entrepreneurial activity along the
Ferozepur Road will extend from Lahore to Kasur.
In rural Bangladesh, agricultural revenue remains the main
source of income. However, the percentage coming from
non-farming activity is increasing dramatically. It has been
estimated that by 2005, over 62% of the rural population
of Bangladesh will find work in non-farming activities.
[World Bank: 1997, 18] Moreover, increasingly the ranks
of the peri-urban work force is made up of rural workers
commuting to peri-urban areas on a daily basis. [World
Bank: 1997, 18] In strictly rural areas, there are significant
changes taking place in local economies:
Manufacturing in permanent establishments
(manufacturing outside the household, often with the
help of hired workers), excluding handlooms, is
dominated by traditional food processing, textiles and
basic metals, accounting for 85 percent of
employment and 78 percent of value added ... The
sector has, nonetheless diversified considerably over
the 1980s. The list of the top 15 industries by
employment has changed considerably towards a
clear urban and peri-urban tilt, both with regard to
market orientation as well as enterprise location, and
non traditional small industries have experienced
rapid growth.
[World Bank: 1997, 56]
Similarly in cities, the practice of urban agriculture, defined
as "the production of food and non-food through
cultivation of plants, tree crops, aquaculture, and animal
husbandry, within urban and peri-urban areas", is on the
rise. [Lindayati: 1996, 3] Urban agriculture is undertaken
to generate income and food for personal consumption.
Backyards, front yards, planters, rooftops, abandoned
buildings, community lands, roadsides and other open
spaces are all potential spots for urban agriculture. In the
1980s, 60% of Greater Bangkok was used for urban
agriculture. [Mougeot: 1993] As a general rule, urban
agriculture finds creative uses for unserviceable pieces of
land, space and water. [Mougeot: 1993] Urban agriculture
is drawing the attention of international organizations,
such as the International Development Research Centre
(IDRC) of Canada, who are trying to promote and
improve upon present urban agricultural practices.
Eventually, changing urban and rural circumstances are
going to force development practitioners to rethink long-
standing approaches to development and, in particular, the
centre piece of development activity, employment
creation. New ways will have to be found to better
integrate industrial and agricultural activity.
2.6 The SSE Sector and Housing
Standards
A housing crisis exists in cities throughout the developing
world, in terms of both availability and quality, and
attempts to provide basic shelter for the poor have
produced mixed results. One problem identified by
McGill University’s CMCH, relating to SSEs, is that
planners and government officials have never understood
that there is "nothing basic about basic housing."
[Rybczynski et al.: 1984, 1] In the past, the decision making
process in housing construction has been too heavily in
favour of finding economic efficiencies in the site layout
through optimizing plot ratios and widths and
construction material.
This approach leaves little room to consider issues of
culture, family complexities and home based
entrepreneurship. The solution, according to the CMCH,
is a new set of settlement standards. "These standards
should seek to accommodate, rather than to reorganize.
They should reflect the (sometimes harsh) reality of the
urban poor, and they should respond to their special
needs, not to an idealized set of criteria."
[Rybczynski et al.: 1984, 1]
Reinventing the City: The Role of Small Scale Enterprise
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![The system of housing championed by the CMCH is
based on housing patterns found in informal settlements,
where houses are routinely built or reconfigured
according to family size, cultural values and the need to
accommodate home based work. As Rybcznski points
out, rather than viewing informal settlements as a
problem, more attention must be payed to understanding
their good qualities in terms of how they respond to the
needs of people:
Informal Housing .... represents a solution rather than
a problem. It is moreover, a solution that appears to
deny conventional planning orthodoxy. The priorities of
the slum dweller are frequently not those of the
municipal authorities. Space takes precedence over
permanence. A porch may be built before a bathroom;
a workplace may be more important than a private
bedroom. The apparent inversion of values is especially
evident in the public spaces. Whereas planned sites
and services projects usually incorporate rudimentary,
minimal circulation spaces, the public areas or slums
are characterized by richness and diversity.
[Rybcznski et al.: 1984, 1]
Similar to the small enterprise sector that supports NMVs,
networks of informal builders and renovators serve the
informal housing market. Informal builders are highly
responsive to the building needs of the poor, and as a
result represent a very large share of the new housing
built in developing countries in terms of numbers and
value. [ILO: 1995] Although SSE services in the housing
sector may be more responsive, it is not clear what quality
of services are being provided. Carr-Harris, for example,
believes there are major issues that need to be addressed
in terms of health and safety standards, especially related
to building materials:
As poor people generally build their own homes without
any government subsidies, they are (often) forced to
use expensive and hazardous materials. During visits
to four or five squatter areas in Delhi, it was noted that
asbestos was a material commonly used for roofing,
when it is known to have a carcinogenic effect. Several
homes have brick walls with black polythene that is
believed to be associated with the high incidence of
coughs, colds, pneumonia and tuberculosis as polythene
forms are inadequate cover against the cold and damp.
Yet other homes had tin roofs which are inappropriate
for indoor cooking. These findings have been
corroborated by other studies of Delhi's urban poor.
[Carr-Harris: 30]
2.7 Local Government
This report cites a number of examples of national and
local governments attempting to understand and improve
the circumstances under which SSEs operate. However,
normally the relationship between SSEs and government
authorities is not healthy. SSEs face the same challenges as
everyone in terms of local governments not delivering
badly needed services. As a result, there is a general
indifference towards governments and what they have to
offer, which manifests itself in a number of ways. In
Pakistan, for example, government officials claim that in a
country of 150 million people, only 1.2 million pay taxes.
[Bearak: 2000]
Also, SSEs must often operate under inappropriate
regulations and by-laws that are administered and
enforced in an uneven manner. Local authorities, who are
unsure of how to deal with what appears to be chaos,
disorder and defiance by SSEs, can end up taking steps that
lead to unfortunate events, such as what occurred in
Mexico City in 1995. In that case, police and hundreds of
informal street vendors clashed violently after a legal
order was issued banning the vendors from the city
centre. The conflict arose, despite years of research and
discussion, between the vendors and authorities regarding
alternative arrangements. [Harrison and Mcvey: 1997]
This type of incident has been re-enacted in countless
other locations in Latin America, Africa and Asia.
Reinventing the City: The Role of Small Scale Enterprise
23](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-30-320.jpg)
![SSEs are reluctant to pay taxes because local governments
do not provide SSEs with infrastructure or services.
Moreover, rarely will small scale entrepreneurs take the
time to register their enterprises. But even if an
entrepreneur wanted to be formally recognized, there is
usually little to be gained, except possibly a lot of red tape.
Box 2.2 summarizes the famous study by Hernando de
Soto on the obstacles faced by informal enterprises
wanting to be legally registered as a small industry.
2.8 Environmental Impacts of SSEs
There is no denying that unwanted environmental impacts
are occurring as a result of urban SSE activity. In some
cases, the consequences can be quite significant in local
communities. The main negative environmental impacts of
urban SSEs are seen as follows:
1. Contribution to the congestion and overcrowding of
cities. The manner in which SSEs occupy public
spaces can be disruptive. Similarly, with shelter
functioning as much as production units as homes,
there are conflicts and undesirable compromises
about how space is used.
2. Poor occupational health and safety (OHS) standards
put the health and safety of workers, entrepreneurs,
family members and the community at risk.
3. The inefficient use of resources, resulting in pollution
and the absence of pollution mitigating technologies.
4. Indiscriminate use of hazardous substances, such as
chemicals, dyes and disinfectants, in a wide range of
unregulated industries.
5. A wide variety of SSE activities for which little is
understood about their environmental impacts.
6. In peri-urban areas, expanding small scale industrial
activity is absorbing farmland. Activities such as
brickmaking and small scale mining are playing havoc
with local ecosystems.
SSEs may not be large in size but they are numerous, and
given they often locate close to or within communities,
there is great potential to do harm, especially to the poor:
Pollution affects the poor more than the better off as
Reinventing the City: The Role of Small Scale Enterprise
24
Box 2.2 The Challenge in Becoming Legitimate
The Instituto Libertad y Democracia (ILD) undertook a simulation to measure the costs of access to industry. To do this, ILD
rented the premises of an established factory, installed sewing machines, knitting machines and other implements, and recruited
four university students to undertake the various bureaucratic procedures, under supervision of a lawyer experienced in
administrative law.
In addition to being very widespread in Peru and thus culturally significant, the activity chosen for the simulation was highly
representative of the obstacles faced by small scale entrepreneurs. It required approximately 60% of the bureaucratic
procedures common to all individual activities, and 90% of those required of non-incorporated individuals. The team also
decided to handle all the necessary red tape without go-betweens — as a person of humble origins would do — and to pay
bribes only when, despite fulfilling all the necessary legal requirements, it was the only way to complete the procedure and
continue with the experiment.
The results showed that a person of modest means must spend 289 days on bureaucratic procedures to fulfill the 11
requirements for setting up a small industry. The cost to establish a formal small industry represented the cost of 32 times the
monthly minimum wage at the time.
[De Soto: 1989]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-31-320.jpg)
![most (SSEs) (polluting or otherwise) are located in low
income areas ... high levels of air pollution associated
with small acid and chemical processing units in North-
east Calcutta were largely ignored by the government of
West Bengal despite protests by the low income
residents. The fact is that most direct victims of pollution
associated with small units are poor or from low income
groups. Their plight attracts little attention as they have
neither the resources nor the time to publicize the
problem.
[Dasgupta: 1997, 291]
In a study of SSEs in Asia, Kent [1991] concluded that
manufacturing SSEs pollute more on a per unit basis than
larger operations. In India alone, small scale industry is
suspected of contributing 60% to 65% of total industrial
pollution. [MSG Environmental Services: 1999, 3] Box 2.3
outlines a number of the SSEs identified in a UNDP study
in Lima (Peru), Harare (Zimbabwe), Bombay (India) and
Leon (India), and the hazardous materials they employ in
the production process.
CIDA-sponsored studies in India [MSG Environmental
Services: 1999] and Bangladesh [Child: 1998] support the
contention that there are a variety of SSEs having
significant negative environmental impacts. The Indian
study identified, among others, the following SSEs and
their main environmental impacts:
Water-related environmental impacts: Starch
production, rice mills, coffee, food processing, agro-
residue, paper mills, textile dyeing and printing, tanneries,
Reinventing the City: The Role of Small Scale Enterprise
25
Box 2.3 Pollutants and Hazardous Residues from Small Scale Industries in
Developing
Countries
INDUSTRY PROCESS HAZARDOUS RESIDUES
Bricks Chronium, fluoride, sulphur, dioxide
Textile dyeing & finishing Cyanide, dyes, oils, resins, sodium hypochlorite, caustic soda, sodium carbonate
polyphosphates
Canning Alkalis, bleach, solvents, wax
Glass and ceramics Arsenic, barium, manganese, selenium
Dry cleaning Solvents, bleach
Dye formulations Tin, zinc
Metal mechanics & metal finishing Caustic soda, sulphuric acid, iron oxide, zinc, solvents
Metal plating Polyphosphates, cyanide, caustic soda, chromium, zinc, carbonates, detergents
Automotive services & machine shops Burnt oil, oil adsorbents, solvents
Pickling Acid, metal, salts
Battery recovery Lead, cadmium, chromium, copper, nickel, acids, mercury, methanol
Paper recycling Methanol, mercury, titanium, zinc, wax pesticide formulations, zinc, copper,
fluoride, organic phosphorus, phenol
Tanning Chronium, arsenic, sulphates bicarbonates, formaldehyde
Photography Cyanide, silver, phenols, mercury, alkalis](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-32-320.jpg)
![chemicals (including drugs and pharmaceuticals) and
electroplating
Energy and air pollution-related
environmental impacts: Bakeries, clay bricks,
ceramics, glass, foundry, steel re-rolling mills and
refractories
Workplace health and safety problems: Majority
of SSEs, especially chemicals, clay bricks, ceramics, glass,
foundry and plastics
[MSG Environmental Services: 1999, 4]
Small scale brickmaking has an notorious reputation for
being highly polluting. Dirty fuel sources from burning
tires, plastics and debris, and other forms of waste, are not
uncommon [see Blackman: 2000]. Box 2.8.2 looks at the
tannery industry in Kasur, Pakistan, and the attempts of
one NGO to help children and their families face the
often horrific consequences of working in and living close
to small scale tanneries. The case study is significant for a
number of reasons, but most notably for highlighting the
work of one of the few NGOs working in the SSE sector
on environmental issues. This topic will be elaborated
upon in the next chapter.
2.8.1 HBEs and the Environment
Although most HBE activity can be described as
environmentally benign [see Napier et al.: 2000], there can
be HBE activity that is highly problematic from an
environmental and safety standpoint. In Semrang,
Indonesia, there are 41 key HBE economic clusters. Of
those, six clusters — food processors (tapioca crackers,
fermented soybean cake makers), upholstery and metal
household utensil manufacturers, brickmakers and
smoked fish operations — were found to be highly
Reinventing the City: The Role of Small Scale Enterprise
26
Box 2.5 Work Standards for Home Based Beedi Makers
In India, there are 35 million beedi rollers and 17,000 tobacco processors making hand rolled beedi cigarettes. Although 90%
of the workers are women, the trade is controlled entirely by men. In a study of beedi workers, the homes were found to
be in poor condition, with barely enough space for all family members. The homes were damp, usually full of smoke, and had
open drains outside full of discarded and stinking beedis. Only 50% of the houses had electricity, and the women were obliged
to work using the inadequate light provided by kerosene lamps. [Bezborouah: 1985 quoted in Tipple: 1993, 531] Exposure
to nicotine by beedi workers has been known to cause tobacco poisoning. Exposure to tobacco dust by beedi workers leads
to irritation in the eyes, conjunctivitis, rhinitis and interference of the mucosal surface. Pregnant women have exhibited
abnormal foetal growth.
[Carr-Harris: 13]
polluting. They impact negatively on local water supply
and produce unacceptable levels of waste.
[Untari et al.: 2000]
Auto repair, small scale foundries and other manufacturing
activity are other types of HBEs that can create
environmental hazards. In addition, OHS standards are a
major issue with many sectors of HBE activity [see Singh
and Girish: 2000 and Panda: 2000]. For example, Box 2.5
describes the situation of home based Indian beedi
(cigarette) makers. Electronics and computers, other
potential hazardous sectors, are two areas of growth of
HBE activity in the world. Throughout the world, large
companies are contracting out to home based workers to
circumvent environmental and safety standards.
[Baines: 2000]
Perhaps the most crucial environmental issue facing HBEs
is the issue of the appropriate use of space. Although
family members and neighbours are very tolerant of the
noise and the spatial imposition of HBEs, at some level
transforming bedrooms and living rooms into HBE
operations must compromise the choices one can make,
and in some cases create conflict. Clearly some forms of
HBE are ill suited for the kind of space and conditions that
a home offers. This is especially true for small, poorly
constructed and ventilated dwellings.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-33-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
27
Box 2.6 Quarrying in Sao Paulo
The small scale mining industry, which surrounds Sao Paulo, Brazil, has a long tradition. With the spread and development of
Sao Paulo, the environmentally problematic mining activity has come under stronger scrutiny. When it came time to act, a
bureaucratic nightmare was discovered. Eighteen government bodies — federal and local — had responsibilities for overseeing
the different aspects of the mining activities in the metropolitan region of Sao Paulo.
Economic and environment authorities responsible for small scale enterprises are separate entities, and co-operation and co-
ordination between the different departments proved to be highly problematic. For example, there was a conflict between
the land use plan for the city put forward by the government of the state of Sao Paulo, and a similar plan put forward by the
municipal government — i.e., a mining site was legal in one plan, but illegal in the other. Furthermore, the environmental
assessment code designed to cover small scale mining is the same as used to measure the environmental impact of large scale
dams and mining productions.
[Werna: 1997, 391-393]
The most contentious issue with home based work is that
it is carried out privately and escapes closer scrutiny. The
field of research in home based entrepreneurship is
growing. Hopefully this will lead to new insights into
understanding and mitigating HBE environmental
problems.
2.8.2 Local Government and the
Environmental Standards of SSEs
At the local level, there can be a complete absence of
policy, legislation, regulation and administrative machinery
regarding the environmental standards of SSEs.
Increasingly, the lack of appropriate environmental
management capacity is becoming a source of conflict
between local governments and SSEs. Unable to respond
to challenging situations, the tendency is for local
governments to react in an impulsive fashion.
The examples of Sao Paulo [Box 2.6] and Delhi [Box 2.7],
although extreme, are indicative of two different areas
where conflicts are arising more frequently. In the Indian
example, the government decision to close down
polluting SSEs ended up having more negative impacts
than could have been foreseen. In 2000, a similar
crackdown on SSEs led to what was described as the
most violent protest in India in recent times. [Statesman
New Service: 2000] Sections of Delhi were closed down
as the protest by workers and entrepreneurs turned into
scattered rioting. Ingenuity and creativity are required to
help municipal authorities develop the skills and resources
necessary to help SSEs master the environmental effects](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-34-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
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Box. 2.7 Local Indian Government and Polluting SSEs
In Delhi in 1996, small scale industries, employing on average 20 people, were hit by a series of court orders requiring them
to take measures to reduce pollution. The results: 1,328 industries were closed down and ordered to move out of Delhi;
90,000 units were notified for relocation; and, factories in 28 industrial estates were ordered to participate in setting up central
effluent treatment plants (CETP). The Delhi Master Plan recommended the closure and relocation from Delhi of all units using
or producing hazardous and noxious products. The process involved relocation and the purchase of vast tracts of land to move
away from ‘non conforming areas’.
In terms of gains, some reduction in local ambient pollution will have taken place with the closure of these units. Most of the
units dealing in hazardous and toxic raw materials and products were located in very densely populated areas.
On the negative side, estimates are that as many as 125,000 people lost work. Relocating firms had very fixed and negative
views on the relations between industry and environment. None of the relocating firms expect to upgrade or change the
present technology to reduce pollution. Any measures taken will be to expand production or to increase productivity of the
existing technology.
Some firms had to install end of pipe pollution abatement equipment. Consequently, they have come to regard environmental
expenditure as unproductive and unnecessary. Not only are these measures ineffective, as they are operated only for the
benefit of visitors and inspectors, the perception it is generating has serious implications for long term environmental
improvements.
Given the poisoned atmosphere, simple cost effective alternatives were ignored. The majority of the factory owners who have
applied for land for relocation generally operate from leased premises or would like to expand their production. Relocation
thus provides an opportunity to expand production and increase profit based on the same polluting technology.
The outcome of the present policies are reinforcing trends that work against the development of a more environmentally
effective and socially acceptable policy. Relevant conclusions are:
1. It is distracting attention from the main sources of urban pollution.
2. It is dispersing pollution instead of reducing it.
3. It is discouraging SSEs to change to cleaner technology.
4. A consequence of pushing clean-up measures is that none of the firms made the link between economic gains and
environmental improvements. Increase in profitability through improved energy use, better material recovery and
reduction of waste are non issues.
5. It is ignoring social issues in the name of the environment.
6. The judicial orders, while they have created some environmental awareness, have not provided solutions. On the contrary,
they have reinforced trends which could impede and delay the introduction of improved environmental management and
governance practices.
[Dasgupta:1998, 1-12]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-35-320.jpg)
![[Fernandez: 1997] However, there are recycling sectors
where the environmental implications are of great
concern. Battery and plastic recycling are two SSE sectors
that can operate with minimal or no environmental
procedures in place. The example of battery recycling in
India in Box 2.8 provides insight into the possible
environmental risks related to recycling.
Why so many SSEs are engaged in unsafe recycling activity
is of course a matter of economic survival. As Dasgupta
points out: "banning these activities as many
environmentalists wish to, may be environmentally
advantageous but carries enormous social costs."
[Dasgupta: 1997] The answer is to develop appropriate
policies and technologies to deal with the environmental
ills of recycling on a small scale. The work of the
Netherlands-based WASTE is the sort of effort that must
be favoured to ensure better SSE recycling practices.
WASTE promotes pilot projects and research into
recycling activity by urban SSEs and promotes discussion
on the topic through an electronic newsletter. (see:
http://www.waste.nl)
2.8.4 Environmental Problems in Peri-
Urban Zones
The blurring distinctions between urban, peri-urban and
rural is not without problems. As Birley and Lock note,
the peri-urban zone can be viewed as a "mosaic of
Reinventing the City: The Role of Small Scale Enterprise
30
Box 2.8 Battery Recycling in Calcutta, India
The recycling sector employs thousands of workers, directly and indirectly. In one area of Calcutta alone, there
are reported to be 210 battery breaking and lead smelting units. The used batteries are broken down to extract
the lead plates; this lead is then smelted and made into ingots to be sold to industry. The process of lead smelting
is the primary source of air pollution.
Lead extraction process
The plastic shell of the battery is cracked open and the battery plate removed. The wastes generated at this
stage are diluted sulphuric acid and distilled water. The lead plates are then mixed with charcoal and smelted in
crude furnaces. The furnace is normally a simple brick structure with four vattis (firing pits). Each vatti has a
door through which it is fired. There are no walls separating the four vattis. This means that opening any one
door affects the efficiency of all the others. Furthermore, all four are connected to the same chimney stack. The
lead which separates from the slag is collected and made into ingots. The slag is stored until a substantial amount
has built up. It is then resmelted several times for further extraction.
The very crude methods and the outdated technology used give rise to pollution at several points in the process:
• There is a high level of noise when the batteries are broken up.
• Sulphuric acid is released when batteries are broken up; this finds its way into drains and the surrounding areas,
leading to land and water contamination.
• Sulphur dioxide and carbon monoxide are released during the smelting process.
• Lead oxide forms a major part of the suspended particles released and the fine dust is easily carried by the
wind.
• Inefficient use of the furnace results in excessive smoke and pressure in the chimney stack, forcing some of the
smoke back into the workplace.
• Seepage from the slag stored for resmelting contaminates land and water.
[Dasgupta: 1997, 293-4]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-37-320.jpg)
![different land uses inhabited by communities of different
economic status, in a state of rapid change with a lack of
infrastructure and a deteriorating environment." [Birley
and Lock: 1998, 89] Moreover, there is a growing conflict
over land use priorities. Agricultural land is being converted
to industrial and residential purposes, and long-standing
economic practices that were once out of sight are now
very visible and close to residential areas.
For example, the following situation involving quarries in
Sao Paulo, Brazil is very common in many developing
countries where small scale mining and brickmaking
permeates the outskirts of urban centres:
In Sao Paulo at the beginning of the century, many
quarries were situated in the rural periphery of the city;
but as Sao Paulo grew, they were progressively
surrounded by the urban fabric. Now the quarries are
totally within the urbanized area, many of them within
the core of the metropolis. As a result, there is growing
conflict with local residents and government authorities ....
Urban quarrying for building materials (can have
significant environmental implications) as the mining of
aggregates such as sand and clay has been responsible
for polluting streams, the loss of organic soil, large holes
in the ground, visual pollution, residual coal and conflicts
about the use of land.
[Werna: 1997, 291- 392]
In peri-urban areas, waste is an enormous problem. One
solution would be to find secondary uses for both
agricultural and industrial wastes. This is already happening
in some peri-urban areas where waste water is being
treated in fish farming systems. In the meantime, the
agriculture being practised is often dependent on high
levels and unsafe use of chemicals. This includes small scale
farmers selling to the urban market. There is a high risk and
evidence that industrial contaminants such as heavy metals
are seeping into food production.
[Birley and Lock: 1998]
The transformation of the economies of peri-urban zones
carries strong implications for the well-being of workers
and their families. Work patterns are evolving, as are the
frequency and types of diseases. The overall impact,
according to Birley and Lock [1998], is a decrease in health
standards.
2.8.5 The Safety of the Workplace
Reinventing the City: The Role of Small Scale Enterprise
31
Untreated waste water flowing beside the Ferozepur Road in Pakistan.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-38-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
32
From peri-urban zones to the heart of the city, one
constant environmental challenge for SSEs is the safety of
the workplace. Increasingly, more and more is being
learned about OHS standards in SSEs. There is no clear
idea about how many people are injured or killed as result
of poor OHS standards. Carr-Harris feels the number
who die in work-related accidents is quite high, citing India
as an example: "If one extrapolates evidence from various
spot studies and population statistics, it is clear that the
number of people killed due to occupational injuries
would be in the region of 150,000 per year, almost 100
times the official statistic." [Carr-Harris: 33] Carr-Harris
also feels that accidents are much higher within the SSE
sector than any other sector. She provides the following
Box 2.8.2 The CIDA-Supported Tannery Children Centre of Kasur
Kasur, with a population of roughly 300,000, is the main tannery centre in Pakistan and recognized as the worst polluter. There
are roughly 200 tanneries, about 100 of which operate as part of the informal economy. Many of these informal tanneries
operate from homes where women and children are involved with the potentially hazardous process of sheep hair handling.
Over 50,000 people are employed in the tanneries, operating within the urban fringe in three main clusters.
The tanneries have degraded the environmental conditions surrounding Kasur, posing major health hazards to the residents. The
effluent discharged by these tanneries, with its high chemical and biological pollution load and no drainage, has rendered a big
stretch of fertile land into lakes of stagnant wastewater. A nauseating smell permeates the air and the city's inhabitants suffer
from eye diseases, skin irritations and gastrointestinal maladies. Lung cancer has also been diagnosed as the cause of death in
some cases. A significant percentage of all medical visits in Kasur are related to health problems caused by the tanneries.
The Lahore-based
NGO, SUDHAAR,
estimates that 1,600
children between
the ages of 6-14 are
working in three
clusters. SUDHAAR
was taken aback by
the lack of concern
shown by inhabitants
for occupational
health standards and
the need for pro-
tection against the
harmful chemicals
used in the tannery
industry.
SUDHAAR established the Tannery Children Centre. SUDHAAR began by encouraging children to join the centre to pursue
primary education. Tanners, supervisors and parents were encouraged to send children and younger, non-working children to
the centre. Since opening, enrolment has tripled to over 180 children, with a staff of four teachers and two community
motivators.
Other than providing education and recreational opportunities, SUDHAAR has held workshops on occupational safety and
health hazards. The staff counsels the children on problems faced at home, the workplace and in the streets. At the demand
of mothers, a basic health programme for children and their families has been set up. A small credit programme has started to
explore the possibility of support to create economic alternatives.
The success of theTannery Children Centre has inspired three additional centres, supported by different agencies, in other parts
of Kasur. Over 600 working children and non-working children are enrolled at these centres.
[Khan and Khan: 1998 / Morishita and ur Rahman: 1999]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-39-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
33
three examples of SSEs from India that are of particular
concern:
1. Food Processing
In Bombay, 51% of the women involved in fish processing
were found to be suffering from fatigue, backache, pain in
the legs and chest congestion. Skin infections, caused by
the bacteria from fish, were also common.
2. Soap Stone, Khadi and Cane/Bamboo Industries
There are more than 40 stone grinding units located on
the outskirts of Udaipur city. Two hundred workers in five
randomly selected units were subjected to a health
examination. It was found that more than 20% suffered
from respiratory diseases, and more than 6% were
coughing up tuberculosis bacilli sputum during
examinations.
3. Leather Processing in India
A high incidence of tuberculosis and other respiratory
aliments has been associated with the dust and fumes
emitted during leather processing. Contact with sulphide,
chlorine dioxide lime and hydrogen sulphide in tanneries
has led to cases of acute toxic poisoning.
[Carr-Harris: 14-15]
Lowenson claims that SSEs face the same workplace OHS
challenges as larger enterprises in terms of physical (noise,
heat, dust, electrical), chemical (pesticides, solvents, acids,
resins, etc.), mechanical (cutting, grinding and other tools,
vehicles), ergonomic (poor working platforms and
positions) and biological (such as animal borne disease), as
well as problems related to the organization of the work.
[Lowenson: 1995, 2] What differentiates SSEs from larger
enterprises are the often brutal conditions surrounding
the workplace, including inadequate water and sanitation
services. According to Lowenson, the factors undermining
SSE health and safety standards are the following:
... low levels of capital, use of primitive tools and
techniques and a tendency to innovate or take shortcuts
in production that, while necessary for economic survival,
may pose serious hazards to the worker; poor working
conditions, poorly regulated by labour or health and
safety laws and poorly monitored by unions, employers’
organizations and the state, as workers, such as those
working for their families are not always under formal
contracts of employment. These problems are
particularly acute in the categories of labour common in
informal and small scale enterprises, such as child,
casual, family and female labour; the majority of
smallholders and a large portion of informal sector
workers are female, while many small rural and urban
enterprise also employ children ...
[Lowenson: 1995, 2]
One of the better documented examples of poor SSE
OHS standards is the artisanal sector. A survey of
occupational illnesses found in traditional crafts in
developing countries included: lead poisoning in potters
and their families in Mexico and Barbados; lead poisoning
in families in Sri Lanka recovering gold and silver from
jeweller's waste, using a molten lead procedure; silicosis
and other respiratory diseases in agate workers in India;
asthma from carving ivory from elephant tusks in Africa;
and, respiratory and ergonomic problems among carpet
weavers in India.
[McCann: 1996, 126]
Another disturbing trend identified in the same study is
the use of modern chemicals and processes by artisanal
entrepreneurs. "As many as 93 cases of peripheral
neuropathy from the use of hexane based adhesives in
sandal making in Japan; paralysis in 44 apprentice shoe
makers in Morocco due to glues containing tri-orthocresyl
phosphate; lead poisoning in lead battery repair workers
and their families in Jamaica: and leg, arm and back pain
and other occupational health problems in home based,
ready made garment workers in India." [McCann: 1996,
126] At great risk are children and other family members
who are inadvertently exposed to safety risks, especially
with HBEs. There are, for example, reports of family
members being exposed to hazardous materials brought
home on the clothes of workers.
[McCann: 1996, 126]
SSE workers, entrepreneurs and their family members
usually do not have adequate health care or health
insurance. They rely more on self-help, traditional health
sectors and primary health care services, where
knowledge and the resources to cope with OHS
problems are poor — i.e., basic capacity to attend to
injuries and make the appropriate diagnosis of more
serious industrial related illnesses.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-40-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
34
2.9 The SSE Paradox
The inherent difficulty that comes with urban small scale
entrepreneurial activity is that what makes it important
from an economic and social standpoint is also what
creates environmental and health risks. The flexibility,
mobility and the absence of laws and regulation may keep
mothers closer to children and overhead cost to a
minimum, but as has been demonstrated, working in this
fashion can carry enormous safety and health risks. The
fragmentation and lack of formal organization also make it
difficult to provide assistance in areas where there is a
definitive need.
Yet it remains important to distinguish between real
environmental problems and mere nuisance factors. SSE
entrepreneurs, workers and everyone living in close
proximity to SSEs seem to have a much higher tolerance
of some of the impositions brought on by SSEs [see, for
example, Gough: 2000]. Care must be taken to identify
those issues that people, entrepreneurs and workers truly
perceive to be problems.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-41-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
37
3.0 Context
It has been said that on given day in any city, an
uncountable number of decisions are made by
entrepreneurs and workers regarding their respective
enterprises. [Schoonbrodt: 1995, 65] The overriding
factor that influences their choices is profit. Yet,
entrepreneurial choices go beyond the realm of
economics to influence the physical environment and
social fabric of the city. Inversely, entrepreneurial decisions
are determined in part by the surrounding environment
and social imperatives. Location and space and the
availability of resources work with other factors, such as
proximity to home and family obligations, to shape
decisions.
Led by a desire to make cities more suited to their reality,
people and entrepreneurs have fought against the mono-
functionality of original planning models to define
communities through density and mixed function. The
challenges and opportunities to promote environmental
change and improve conditions exist within this context.
What is required is more experimentation and a
willingness to work with different ideas and concepts to
promote change and innovation.
This chapter examines different ideas and strategies for
promoting change and innovation from the perspective of
understanding when and how to intervene. The ability of
urban SSEs to respond to environmental challenges and
opportunities must and can be raised to another level of
activity and effectiveness. In short, an entrepreneurial
spirit must be created where good environmental
management practices become more intentional, and are
shaped by the internal economic processes and networks
found within cities. Beginning with a discussion regarding
the role of participation, this chapter will explore the
circumstances under which institutional guidance,
knowledge and resources can help achieve the desired
entrepreneurial spirit.
3.1 The Participation of Entrepreneurs
and Workers
Over the past few years, there has been a profound
reconfirmation of the importance of participatory
development. In all types of project activity, development
practitioners and government authorities are being
challenged to involve stakeholders in a significant manner
in the projects intended for their benefit. A participatory
approach requires more time and planning, but holds the
promise, if carried out correctly, of greater success in
securing the long- term commitment of stakeholders.
Participatory development implies placing considerable
faith in people to articulate problems, and to identify and
implement solutions. This can be very intimidating for
people, such as local government authorities, who may
feel their authority and expertise is threatened. [Pallen:
1997b] This is especially true if local authorities have a
relationship with entrepreneurs that is already
confrontational.
There is growing expertise in the field of participatory
practices related to project planning, implementation and
monitoring. Local expertise can be found in all developing
countries. New participatory methodologies include
many for use specifically in urban centres. [IIED: 1994] In
India, UNICEF and the National Institute of Urban Affairs
designed urban participatory tools suited to the Indian
urban context. The ILO's WISE Programme [see Chapter
5], and recent developments in the field of PRA [see Box
3.1], related to micro enterprise, are making it easier to
engage entrepreneurs and workers in a more meaningful
way.
Chapter Three
Facilitating Innovation and Opportunity — The Environment
and Entrepreneurship in Cities](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-44-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
38
Box. 3.1 Using PRA with Micro Enterprises in Eritrea
Participatory Rural Appraisal (PRA) is a general term describing a collection of techniques designed to facilitate the participation
of people in projects intended for their own benefit. In Eritrea, PRA techniques were developed to help sometimes illiterate
clients work out and forecast their own cash flows and identify production bottlenecks. While PRA tools tend to focus on
groups of people, micro entrepreneurship is individual.
Southern Zone Savings and Credit Scheme decided in 1997 to find new ways to increase the participation in their business
support programmes. PRA methods were developed on two levels: first, in relation to feasibility studies of the economy of the
individual household. Second, methods were tried out in relation to social targeting and impact monitoring by village
communities. A methodology was developed to analyze both the household economy and the business plan of a client
household. The methods takes into account that many clients are illiterate and innumerate but do their planning by mental
arithmetic. The methodology received positive feedback from clients.
[Sorensen: 1998, 40-48]
Although profit will always be the key motivation for
workers and entrepreneurs, there are other factors that
can influence their outlook. Entrepreneurs and workers
are also community and family members and parents. As
such, they can be expected to have different concerns and
priorities that can factor into their decision to participate.
Entrepreneurs and workers can show enormous ingenuity
and resourcefulness in coping with day-to-day struggles.
Thoughtful and creative participatory practices could
bring these instincts and experience into a more proactive
realm of problem solving.
Participatory methods can be used to approach
entrepreneurs and workers on both an individual and
collective basis. It is highly possible that entrepreneurs
would have a collective interest in tackling a particular
problem — such as community housing standards, or
water and sanitation services. This was certainly the case
inViswas Nager in East Delhi, where local SSE associations
worked with authorities to improve infrastructure, and
bring water and sanitation services to the settlement.
[Benjamin: 1991]
There are often existing networks and associations of
enterprises that can facilitate collective participation.
Many of these associations and networks are informal. It
may also be necessary to create new networks, based on
common interests. Whether working with existing
networks, or creating new ones, self-direction must be at
the heart of all collaboration.
3.2 The Participation of Women
Given the prominence of women in urban, small scale
entrepreneurial activity, the importance of understanding
how women view matters cannot be stressed enough. As
pointed out in Stren, "women's requirements for land and
housing, the structure of households and families,
women's responses to urbanization, their ways of earning
income, and their access to services" are unique. [Stren
ed.: 1994, 322] Their role as mothers forces them to see
and interact with their environment in a very different
manner from men. Their overriding concern to maintain
and secure healthy environments for family members
and, in some cases, other community members makes
women more receptive to non-economic ideas and
objectives.
3.3 The Importance of Starting Small
A study on innovations for the improvement of the urban
environment, undertaken by the European Foundation for
the Improvement of Living and Working Conditions,
revealed that micro projects in the urban sector can pay
enormous dividends with an initial low capital investment,
provided the projects have been well planned. [1996, 9-
14] These micro projects worked well because, rather
than trying to change a system, they develop from an
existing one. This is similar to the success of small scale
NGO activity in developing countries:](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-45-320.jpg)
![Reinventing the City: The Role of Small Scale Enterprise
39
Integrating development work into existing structures
and systems and in particular governments structures
can pay rich rewards in terms of impact, replication and
sustainability providing the conditions of integration are
right ... and ... are more likely to be successful at scaling
up if they do so through the planned multiplication of
micro level inputs rather than through a process of
designing and implementing macro level projects.
[Mackie, in Edwards and Hulme: 1992, 70]
In a field where little collective experience and expertise
has been acquired, the emphasis must be on activities
where excessive risks are avoided. The smaller the
intervention, the greater the control that can be exercised.
Micro projects also play to the strengths of NGOs,
community groups, enterprise associations and other
smaller organizations — the groups most likely to make a
critical difference.
The adherence to the principal of starting small is
especially paramount when technology is involved. Over
the years, the question of technological appropriateness
has been one of the most difficult challenges for
development practitioners. For this reason, development
organizations promoting technological solutions now
spend more time on planning and working with end users,
to help ensure successful adaptation.
Once a product, technology or process is proven to be
practical, financially viable and socially acceptable, there is
no reason why it cannot be disseminated more broadly.
Limited interventions can grow, as was the case of the Jiko
and Diambar stoves in East Africa and Senegal, where
energy efficient stove models became widely popular [see
Pallen: 1997a, 21]. Still one has to be realistic about how
much can be accomplished with a micro project:
There are two particular issues here for micro projects.
First, there is a danger that we overstate the
transferability of micro projects and especially the micro
elements of larger projects. Both micro projects and
micro elements benefits from the synergy they develop
with their surroundings. They are, in other words,
effective because of the particular relationships and
conditions within which they are embedded ...The whole
is very often greater that the sum of the parts and unless
we are careful we can exaggerate the role of particular
‘micro bits’.
[European Foundation for the Improvement of Living
and Working Conditions: 1996, 58]
3.4 Improvisation, Innovation and
Imitation
There appear to be three economic conditions that occur
naturally in the economic milieu of SSEs — improvisation,
innovation and imitation — that could help support good
ideas, technologies and products.
3.4.1 Improvisation
The renowned urban specialist, Jane Jacobs, felt that one
of the key dynamics in urban economic activity is the
practice of improvising:
... the practice of improvising fosters a state of mind
essential to all economic development ... no matter what
stage development has reached the practice of
improvising, in itself, fosters delight in pulling it off
successfully ... invention, practical problem solving,
improvisation and innovation are all part and parcel of
one another ... development is a process of continually
improvising in a context that makes injecting
improvisation into everyday economic life feasible.
[Jacobs: 1985 Vintage Books edition, 149-150]
Schoonbrodt sees improvisation as the engine of
economic development and defines the practice as
follows: "improvising, which guides behaviour and does so
constantly ... improvisation concerning both products and
industrial methods, the aim being to imitate existing
products whilst cutting their production costs ... Substitute
materials, inexpensive energy sources ..."
[Schoonbrodt, 1995, 57]
Whether in the world of music or industry, improvisation
requires a mastery of a basic set of skills and knowledge
that can be called upon to achieve special ends. In the
world of urban SSEs, this is most often seen as a coping
mechanism but it is also a skill. The world of SSEs is one
where to make ends meet the skill of improvisation
becomes paramount. Lowenson [1995] is critical of
improvisation in the SSE milieu, seeing it simply as an act](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-46-320.jpg)
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of cutting corners, which leads to lapses in workplace
safety. This is probably true to some extent. However,
improvisation combined with other skills can lead to
positive refinements in both products and production
techniques [see King: 1996].
3.4.2 Imitation
Very close to improvisation is the practice of imitation. It
is a "shortcut, an economic borrowing." [Jacobs, in
European Foundation for the Improvement of Living and
Working Conditions: 1996, 6] Imitation is not limited
simply to products. It can apply to production processes
and technologies. Imitation within the SSE sector is
widespread, making it realistic to expect that good
environmental practices and technologies could be
imitated widely. The challenge is to find those technologies
and practices that have appeal, and spread their use. King
provides the example of the metalworking capacity in the
Jua Kali informal sector of Kenya to demonstrate the
inherent ability of enterprises on the margins to evolve
through imitation:
... (the) spread of basic metalworking technologies is
something we have termed technological confidence.
This is not so much based on science or technology
education in schools, but rather to be a kind of can-do
mentality acquired over time both in the formal sector
by those who then strike out on their own, as well as by
those who develop it entirely within the informal sector.
What is noticeable, however, is how rapidly a particular
small lead in technology by one Jua Kali entrepreneur
seems to be undermined by the speed with which it is
copied by others. This points to a high degree of
competition amongst Jua Kali with similar levels of
technology.
[King: 1996, 418]
3.4.3 Innovation
Innovation is very much an integral part of the makeup of
cities, a by-product of a highly vibrant milieu. How much
innovation takes place in the SSE sector in developing
countries is a matter of debate. Some observers feel that
the SSE sector does more imitating and improvising than
inventing. Manu [1998] points out that although the SSE
sector has a good record of innovation in the rest of the
world, this is not necessarily true in Africa. Others, such
as King [1996], feel that innovation is very much present
in the SSE sector. If innovation has been occurring in the
SSE sector, it has done so without support for research
and promotion. The budget worldwide for research and
support in the SSE sector is but 1% of all the resources
provided to business.
[Manu: 1998]
Innovation can solve both simple problems and highly
complex ones. Even simple innovations have the potential
to solve both: "Innovations have to address complex cross
disciplinary, lateral and synthetic realities, but they don't
have to be complex." [European Foundation for the
Improvement of Living and Working Conditions: 1996, 6]
Moreover, innovation in support of better environmental
practices can come in many guises. In addition to
technological advances, there can be economic, social and
political innovation that can positively influence the
operations of SSEs.
3.5 Promoting More Responsive
Municipal Government
The movement towards democratic reform and
decentralization, taking hold in many developing countries,
could not be more timely. Entrepreneurs, and their
respective associations, NGOs and development agencies,
will be hard pressed to improve environmental standards
if local governments are unable to participate. Reform
and decentralization must establish more flexible and
constructive legal systems related to small scale
entrepreneurship. Local governments should be
encouraged to experiment beyond traditional institutional
boundaries, and to think about how SSEs can be better
assimilated into urban planning initiatives. Moreover,
structural innovations are needed to overcome the
inflexibility and inadequacy of local bureaucracies.
Yet, it is not essential to wait until local governments are
transformed to begin working with municipalities. There
is a lot of room to make improvements in the short term
on both a pragmatic and strategic basis. A first step would
be to begin working with a select number of municipalities
to correct any malaise existing between government
officials and the SSE sector. As Stren points out,
development agencies changed their attitude towards the
SSE sector in the 1970s when it was recognized that the
sector has many attractive qualities, such as "adaptability,](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-47-320.jpg)
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A realistic examination is also needed regarding all local
government departments, in terms of their relationship to
small scale enterprise. If the majority of people in cities
end up working in the SSE sector, does it not seem
reasonable that more emphasis be placed on preparing
them to have the skills to excel and improve conditions in
this economic sector? Vocational training could be
reinforced to correspond with what is being learned
informally on the job. New approaches and institutional
arrangements could be established to reach out to, train
and educate SSE workers and entrepreneurs in
occupational health and safety practices.
Similarly, primary health care workers need more training
in basic recognition and treatment of occupational
diseases. In the United States, the Appalachian Center for
Economic Networks has been working with small
enterprises and local technical colleges to provide health
and safety courses for a network of ‘micro firms’.
[ACEnet: 1996] This is one direction urban health services
Box 3.2 Creative Administration in Sao Pablo
The legal and administrative labyrinth meant to oversee quarrying in Sao Pablo was stifling attempts to ensure environmental
standards. The Quarry Group was created to deal with urban quarrying issues. This group, taking a proactive role, has helped
curb existing conflicts between authorities, the communities and miners. The approach is innovative, at least in the local context.
Quarrying group members go to the sites of conflict and work jointly with the community and miners, with the aim of raising
the awareness of everyone involved about each others' standpoints, and providing an opportunity to discuss solutions together.
[Werna: 1997]
Box 3.3 Participatory Planning, Housing and Municipal Reform in Lublin, Poland
In 1990, a process was undertaken to revitalize the neighbourhoods of Lublin, Poland. Lublin's Urban Planning Unit launched a
‘participatory planning process’ to involve community members in the rehabilitation of their neighbourhoods. The city and local
communities developed a plan for sharing the cost of projects to rehabilitate the local infrastructure in two pilot areas. A key
achievement in formulating planning regulations was to promote the development of micro enterprises and home based
enterprises, and expedite permitting procedures to stimulate housing renovation and expansion. Within two years, 137 houses
were renovated and 50 new buildings constructed; 55 micro enterprises were established in renovated buildings, employing 120
people.
[Serageldin and Kipta: 1996, 10]
ambition and the willingness to take risks in both bad and
good times."
[Stren, 1992a, 82]
There is a blanket criticism that local governments are set
in their ways. In innovative pilot projects, the ILO has had
success working with municipalities in both Africa and Asia
to overcome the hostility between municipal authorities
and local informal entrepreneurs [see Peters-Berries:
1996] The key appears to be to establish lines of
communication between the two sides. Eventually a
common basis of understanding may emerge, which
allows local authorities to focus more on the positive
contribution SSEs make to cities, and not just on the
perceived chaos and disorganization.
More and more local governments are experimenting
with new forms of enterprise legislation in support of
industrial parks and economic trade zones. This document
highlights a number of pilot projects demonstrating how
local governments are playing constructive roles in
improving conditions for SSEs. Boxes 3.2 and 3.3 illustrate
how changes in administrative practices can facilitate
improvements in environmental standards.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-48-320.jpg)
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could take. New approaches could be established in such
diverse fields as architecture, housing, engineering and
urban planning to support small scale entrepreneurial
activity.
Finally, much more must be expected out of departments
of environment. They need the resources and expertise
to fulfill broader mandates, to not only enforce standards,
but also to take on more of an advocacy role by helping
environmentally troublesome SSEs make the shift to
greener forms of production.
By embracing and working with small scale
entrepreneurship, local authorities can benefit from the
energy and creativity existing in the sector. This will also
raise the possibility of new sources of revenues to pay for
services and infrastructure. Tipple provides the example
of building more appropriate dwellings for home based
entrepreneurship and the opportunities for revenue
generation:
Where commercial activity is encouraged on residential
plots, the potential arises for cross subsidy. For
example, corner plots where main routes meet can be
particularly highly priced because, upon development,
they would be well suited to commercial activity.
[Tipple: 1993, 535]
3.6 Informal Regulation
As noted earlier, there is an incredible degree of tolerance
on the part of neighbours and family members of the
noises and other inconveniences created by SSEs. Yet,
there are limits to this, and it is often informal forms of
regulation that keep SSE activity in line with community
expectation. Gough describes the situation in one
neighbourhood in Accra, Ghana:
Although there is widespread acceptance of the
operation of economic enterprises in residential
neighbourhoods, the HBE operators are not entirely free
to operate when or where they chose. They face
potential control by local government officials ...
(However) the more informal modes of control of home
based enterprises appear to be more extensive than the
official channels. The greatest degree of control is
(exerted) by landlords who have the power to prevent
their tenants from conducting certain activities on their
premises. Although many landlords do not restrict their
tenants in this manner, some refuse their tenants
permission to operate certain enterprises. Other
residents of the house or of the neighbourhood at times
also exert an influence over the operation of home
based enterprises. Although they do not have the same
degree of power as a landlord, at times their complaints
lead to a change in either the location or the practices
of the operators ... the extent of informal mechanisms of
control of home based enterprises is very clear.
[Gough: 2000, 12]
A study in the city of Surabaya, Indonesia, came to similar
conclusions:
It is instructive to see how social constraints limit the
type of economic enterprises introduced, thereby
avoiding the most potentially problematic and conflictive
circumstances. This is all done without reference to
external, official agencies or norms dictating or
regulating the type of activity deemed appropriate.
[Bishop and Kellet: 2000, 8]
Another factor that could be brought into play is family
relationships. This is true both in terms of regulating SSEs,
but also for more proactive endeavours. In the study
noted above of Surabaya, Indonesia, and another in Santa
Marta, Colombia, it is revealed to what extent streets and,
indeed, entire neighbourhoods can be populated by
extended family members. In Santa Marta: "The
settlements are not populated by individual households
but dense networks of interrelated families. Over 70% of
households in the informal settlements of Once de
Noviembre and Nueva Columbia have other relatives
living in one or both settlements." [Kellet: 2000, 7] Where
family relationships permeate a neighbourhood, it could
provide a unique foundation for addressing any number of
problems facing the community.
In Ciudad Juárez, Mexico, a project attempted to convert
polluting small scale brickmakers from dirty fuel sources
to propane gas. Although the project had limited success,
one achievement was the effective use of informal
regulation, which saw trade unions and community
members living in close proximity to the kilns enforcing
standards:](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-49-320.jpg)
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Trade unions and neighbourhood associations were
convinced to support the propane initiative and played a
central role in implementing it. In certain backyards, they
created rules regarding which fuels were permissible,
monitored compliance, and imposed sanctions on
violators. In addition, to enforce a ban on burning debris
(as a fuel source), the municipal environmental authority
relied on citizen complaints to identify kilns that were not
in compliance.
[Blackman: 2000, 12]
3.7 NGO Involvement in the SSE Sector
Two studies supported by CIDA identified another major
problem related to improving the environmental
standards of SSEs — the near absence of NGOs working
in the SSE sector on environmental issues. Even in the
field of workplace safety, where the interests of women
and children are paramount, there are relatively few active
NGOs. The exceptions are NGOs working on child
worker rights, and to a lesser extent home based workers
in the textile industry. There are also other NGOs
addressing the extreme environmental impacts of highly
polluting SSEs, such as the small scale tanneries described
in the previous chapter in Kashur, Pakistan.
Given the unique circumstances under which SSEs
operate, there can be substantial barriers to anyone being
able to provide effective assistance, other than those with
a strong understanding of the entrepreneurial milieu and
the communities in which SSEs are active. For this reason
it would be advantageous to partner with local
intermediators, such as NGOs and community groups. To
do this, NGOs and community groups must be better
informed about small scale entrepreneurship and issues
relating to the environment. Local government weakness
could then be partially overcome by a more capable
NGO sector that would have an easier relationship with
entrepreneurs and their associations than local authorities.
3.8 Land Tenure
When Chilean development specialist Hernando de Soto
was asked what needed to be done to control the
negative environmental impact of the informal sector on
cities, his answer was land tenure. De Soto felt, as many
do, that unless people feel they have a long term interest
in maintaining a property or a piece of land, they will not
do so. [Fernandez-Morera: 1999,7] The argument goes
that land tenure would encourage people and families to
make more concerted efforts to improve, not only their
living conditions, but their communities as well.
Given the vast number of people affected by this issue,
one would expect there would be more examples of
creative solutions to land tenure problems to provide
some guidance. There are, however, very few good
examples. Perhaps the most positive finding has been that
people are willing to make improvements in communities
even without absolute land tenure. Case studies
demonstrate that a simple guarantee on the part of local
authorities to leave informal settlers alone for a year or
more will result in community improvements. [Payne:
1997] This discovery bodes well for finding more
intermediate solutions to any number of assorted
problems found in informal settlements that, historically,
have been blocked by the lack of land tenure.
3.9 Enterprise Incubation and
Extension Programmes
Enterprise incubation, the practice of providing technical
support and services to enterprises has a long history in
developing countries. Incubation programmes work from
the principle that while individual firms may not be able to
afford technological research and consultancy services,
groups of small enterprises can contract services from any
number of sources. A joint UNDP/IADB/UNIDO review
of incubator programmes in developing countries
revealed that: "They can be a cost effective instrument in
the creation of new enterprises and in the development
of jobs. Over 1,500 incubator programmes were known
to be in operation throughout the world in 1996."
[Lalkaka and Bishop: 1996,VII-VIII] Extension programmes
attempt to offer similar services to incubation
programmes, often by establishing a permanent physical
base within reach of entrepreneurs.
Historically, there has been difficulty in reaching out to
small and micro entrepreneurs, although the situation with
small scale entrepreneurs is not as desperate as with the
micro/informal sector. Part of the problem has been that
enterprise incubation programmes are often sponsored
by the public sector, "the sector that is least in a position
to provide effective help." [Stren: 1992a, 64] Wilson
provides an outline of what he feels is necessary to make
an extension programme successful:](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-50-320.jpg)
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... programmes could be established on a sectoral basis
where there is the basis of a shared culture between
firms ... within, a given sector, an extension programme
should be able to map reasonably accurately firms’
needs, but the key issue here is the extent to which
extension workers are themselves prepared to learn the
characteristics of the enterprises they are helping. Such
learning would appear to be essential if the extension
worker is to recognize the unique technological capability
requirements of different enterprises and to build upon
that which already exists. In other words, extension
support needs to start from what an individual
enterprise already knows and does, rather than what it
does not know to do, and be prepared to act as a
participatory facilitator in the technological learning
process. Then, the potential exists to develop capacities
for incremental learning that both optimizes the day-to-
day capability and takes the firm beyond it.
[Wilson: 1996, 498]
Box: 3.4 An Experiment in Support of Small Urban Producers in Benin
The Small Urban Producers Programme (SUPP) used five principles in a participatory support strategy for small
handicrafts producers, derived from an initial experiment carried out between 1982 and 1989 in 15 towns in Mali,
Rwanda and Togo. Namely:
1. Respect for local creativity and initiative.
2. Minimization of recipients’ dependence on external factors, by mobilizing local resources.
3. Consolidation of the social cohesion of target groups by encouraging self-organization and creative
experimentation, even at the risk of error.
4. Promotion of broader negotiations with existing institutions by emphasizing consultation, rather than heavy
handed control.
5. Promotion of networks between grassroots organizations, sharing a spirit of solidarity and self-reliant
development, with a view to strengthening relations among them.
SUPP worked with the Government of Benin to refine methods used in enhancing the capacity of small producers
to develop group strategies and set up cost-effective, group-based production support services. The method
combines: a financial instrument (mutual savings and loan associations); a technical and production promotion
instrument (common facilities workshops); a marketing strategy (market development and diversification); and,
above all, the promotion of independent socio-occupational federations.
The previous projects taught that direct micro economic support to small producers can assist the development of
sustainable and replicable structures only if accompanied by macro economic and institutional measures to foster
micro enterprises and create a climate conducive to their work. SUPP derives from a concept of participatory
development in which three conditions must be met for external assistance to have an internal catalytic effect:
1. Gradual mobilization of the participants’ own financial, technical and human resources with a view to their self-
reliance.
2. Organization of participation aimed at stimulating the recipients’ desire for improvement and affirming their
social identity.
3. Institutional recognition and representation of participants, enabling them to negotiate, assert their rights and
cope with the constraints inherent in their unfavourable economic and institutional environments.
The enterprises, therefore, co-operate through flexible and loose networks to establish contact and support
structures controlled by the producers themselves. The approach combines the flexibility of micro enterprises with
the economies of scale to be gained from common support facilities.
[Maldonado: 1993]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-51-320.jpg)
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To make enterprise incubation and extensions
programmes effective, it is important to avoid simply
scaling down or transferring technology and management
techniques used in larger enterprises. New managerial
options and training services must be developed for SSEs
and their respective entrepreneurial milieu. The example
in Box 3.4, regarding small scale producers from Benin, is
important in that it shows how government, creative
financing and participation can be brought together in an
innovative fashion. Finally, SSEs need assistance in making
improvements in product design, productivity, quality,
management and marketing. Clearly this is closer to their
priorities than environmental management. However,
working on these issues can also open the door to
introducing better environmental practices.
3.10 Financing
While the health risk of bad water, poor sanitation and
the like have not been forgotten, it is no longer
conventional to treat them as complex environmental
problems requiring better science, innovative responses
and social mobilization. Rather, by and large, they are
viewed as problems whose solutions are known, but for
which the requisite finances are not always available, to
which insufficient priority is given, or which require a
somewhat different mix of public and private sector
involvement.
[McGranaham et al., in Pugh: 1996, 110]
The above reference to urban environmental problems
and the poor touches on the all too important question
of the availability of financial resources. Although there
exists room to undertake activities at little or no cost,
there is a need for financial institutions and services that
entrepreneurs can trust. Such financial resources should
also be located in the communities where the SSEs
operate.
The practice of micro finance, whereby entrepreneurs
obtain loans for small amounts, is growing in developing
countries. Previously a rural phenomena, micro finance
services are becoming more established in cities. Micro
finance has become an effective tool in generating
employment opportunities for entrepreneurs and
workers [see Khander et al.: 1998]. Not only are there
more and more organizations with the main objective of
lending money to poor entrepreneurs, there are also a
growing number of municipalities, in countries such as
India and Peru [see Box 3.5], experimenting with micro
finance as a means to providing infrastructure services and
transportation for the poor.
Housing is another area where innovative financing
schemes have been developed to facilitate the upgrading,
renovation and extensions of the homes of the poor. As
Mitlin [1997, 46] points out: "There are numerous new
models for providing housing finance to low income
households that have been developed over the last 15
years. They have been developed to support a large scale
process of incremental housing development through loan
finance. Many of these programmes have secured high
repayment rates." Similarly, micro finance schemes are
being used to facilitate positive new developments in the
Box 3:5 Government Support for Bicycling in Lima, Peru
In some places, the greatest obstacle to cycling is also the most basic — lack of a bicycle. In many developing countries, bikes may
be absent from the urban landscape because they can cost a month's salary or more. The municipal government of Lima, Peru, has
addressed this issue by setting up a micro credit programme to facilitate bike purchases. Twelve-month loans of $100 have been
made available to low income citizens. The city is capitalizing on people's desire to bike. Research has shown that two-thirds of men
in the project area, and more than half of the women, would cycle if they had access to a bike. Together with the expansion of
bikeways, the loan programme is part of the city's declared effort to increase the share of trips made by non- motorized vehicles from
2 to 10 percent.
[Gardner: 1998, 20]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-52-320.jpg)
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water and sanitation field that call for a more prominent
role for low income urban communities in designing,
delivering and maintaining community water and
sanitation services. [see Cotton et al.: 1998]
The experience of micro finance in support of micro
enterprises, housing construction and renovation, and
water and sanitation for the poor demonstrates that there
are options for being creative in terms of the
environment. There is a growing and varied community
level financial expertise that can now be called upon in all
countries. It is also equally important to keep in mind that
the urban poor are much more financially capable than
people give them credit for:
The living environments of low-income settlements can
be substantially improved at relatively modest per
capita cost through the provision of basic infrastructure
and services. The cost constraints of making available
such facilities seem to be overstated, while the
willingness and ability of poorer groups to pay for
improved services seems to be underestimated.
[Lee Yok-Shiu: 1998, 993]
Another avenue that needs to be explored is how SSE
associations and networks can be approached to finance
neighbourhood improvements and obtain services that
benefit not only their industries, but the communities in
which they operate as well.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-53-320.jpg)
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4.0 Introduction
There are countless little and not so little ways in which
cities could be made better places by improving SSE
workplace and environmental standards. The case studies
and ideas presented in the remaining chapters
demonstrate that once the SSE sector becomes a
planning variable, previously unthought of options are
created for addressing long-standing problems. Housing
developments, streets, public spaces and entire
neighbourhoods could take on a variety of different forms
in light of better factoring in the needs of SSEs. This
chapter begins with a look at potential changes in the
transportation sector.
4.1 Transportation
In San Salvador, the local distributor for Pepsi found
that a bicycle and trailer could deliver 900 cases of
soda per month — as many as the previous delivery
vehicle, a 5-ton truck, but at a fraction of the expense.
The bicycle proved well suited to deliver quickly to the
numerous and closely spaced delivery points (small
shops and homes that stock a few items for sale to
neighbours). Similarly, the experience of the largest
industrial bakery in Bogotá, which replaced 200
delivery trucks with 800 tricycles a few years ago —
a move that substantially lowered the cost of deliveries
to its 22,000 daily customers.
[Gardner: 1998, 18-19]
Chapter Four Redesigning Communities](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-56-320.jpg)
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The level of technology advancement in relation to
bicycles has remained, by and large, fixed for generations
in bicycle-orientated countries such as China [see
Newton: 1993]. Yet in North America, there has been
significant improvements in bicycle technology in terms of
components, wheels, and the weight and durability of
frames. There is also a growing use of various trailer and
cargo technologies. In Canada, one cargo bike business
has secured a contract with the University of British
Colombia to furnish the university with the necessary
bikes to make the transition to an automobile free
campus. One of the cargo bikes is reputed to be able to
transport a mobile home [see www.bikecartage.com].
The experience of Pepsi and the industrial baker in Bogotá
are reflective of the type of practical and realistic
approaches to urban transportation that must be
encouraged and accommodated. Simple adjustments can
be made in the design of roads, streets and alleys to allow
NMVs to circulate more securely and effectively. This can
come in the form of separate lanes or pathways for NMVs
or shared routes, where as the World Bank suggests,
adjustments are made in terms of speed, and where and
how motorized and non-motorized modes link.
[World Bank: 1995]
In Asian cities, such as Shanghai, Tokyo, Dhaka, Hanoi,
Chiang Mai, Kanpur and Surabaya, exclusive NMV routes
are found to varying degrees in the shape of lanes,
pathways and parking areas that have been designated for
NMV use. [World Bank: 1995] In Box 4.1, the success of
the city of Pune, India, in developing a network of bicycle
and pedestrians paths is described. Pune demonstrates
how the addition of a well planned lane or pathway can
be highly effective and contribute to increased NMV use.
In those parts of town where SSE activity is significant, a
pragmatic approach to transportation is required. The
proof that this approach will work is found in settlements
such as Viswas Nager in East Delhi, where the
transportation of goods by cycle-rickshaws facilitated the
growth and establishment of one of the key manufacturing
centres in India. The city of Lima, Peru, has also proven
this is possible [see Box 4.2]. Although in Lima the aim
was to transport workers from informal settlements to
their place of work, how difficult could it be to design non-
motorized transport systems facilitating the movement of
workers, goods and services within a community?
In addition to improvements in transportation routes,
more attention must be paid to the quality and capabilities
of NMVs and certain forms of motorized vehicles. In the
case of NMVs, the objective must be to make
improvements in speed, durability and capacity to
transport goods. The technologies related to bicycles and
carts are not complicated, and there is considerable room
to innovate and make improvements.
Box 4.1 Sustainable Transport in Pune, India
In India, the city of Pune and the state Government of Maharashtra, working with the World Bank, developed a transportation
system designed to provide safe, quick and easy routes for pedestrians and non-motorized vehicles between residential areas and
the city centre. The project aimed to improve the efficient running of essential motor vehicles on existing roads, by removing
conflicts with bicycles and pedestrians. Pedestrians, cyclists and bicycle rickshaws had been accounting for 85% of all traffic
casualties, resulting in five deaths a week.
A network of bicycle/pedestrian lanes and specially designated overpasses and underpasses has been created. It is estimated that
46% of cycle trips will be diverted onto the new network, leading to a substantial reduction in accidents. In a city where each
home owns a bicycle, and another 50,000 are available for hire, the project contributed to increased bicycle ownership. Accidents
are decreasing and traffic on the main routes are moving at higher speeds. The first phase of the project was completed in 1993,
at a cost of US$ 2.3 million.
[Hathway: 1994/95]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-57-320.jpg)
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Box 4.2 Bikeways Come to Lima's Mean Streets: Innovative Transport for Low
Income
Communities
Over 1,350 people a year are killed by motor vehicles in Lima, and over 70% of the victims are bicyclists or pedestrians. Recently,
the mayor's office of Lima launched a plan to increase bicycle use, from a current level of 2% to 10% of all trips: by building 86
kilometres of bike paths; by making low interest loans available to help low income families buy bicycles; and, by promoting bicycle
use [see Box 3.5]. The main artery of the bikeway network joins low income areas in the Northern Cone of Lima with the
important urban industrial zone, where nearly 9,000 enterprises employ over 70,000 people. When completed, there will be 51
kilometres of cycle ways and 35 kilometres of bike paths on reconditioned service roads. The people in this area live within six
kilometres of their workplace, a distance ideal for bike commuting, and are poorly served by expensive and irregular public transit
and para-transit services. Similar projects are planned for the Peruvian cities of Cuzco and Arequipa.
[Peters: 1997]
Cargo carrying bicycles
in Jaipur, India.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-58-320.jpg)
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There is an attitude that only the rich benefit from
environmental improvements. In the case of small scale
motorized vehicles, this generalization could not be
further from the truth. Moreover, the Nepali experience
with non polluting taxis is one of the rare examples of
successful enforcement of environmental standards in the
SSE sector. The factors contributing to its success were an
extensive test period, donor support, and strong political
and public will to address the problem.
Elsewhere in South Asia, CIDA, in collaboration with
Environment Canada, have a number of pilot projects at
various stages of development related to the conversion
of two stroke, three wheel auto-rickshaws to compressed
natural gas (CNG). Natural Resources Canada is
supporting an initiative by a Canadian entrepreneur to
promote motorcycles that operate with alternative fuels
utilizing refillable energy packs. Box 4.4 looks at other
initiatives to improve the environmental performance of
small vehicles, outlining two fundamentally different
attempts to solve the same problem. The contrast in the
two examples provides a sense of what the future could
hold.
4.2 Facilitating Sustainable Home Based
Enterprise
Given the popularity of, and economic need for, home
based entrepreneurship, and the ongoing housing crisis
facing cities throughout the developing world, this would
appear to be an area where significant developments
should take place. New housing models need to be
established that recognize and encourage better
coexistence between economic and domestic activities.
Greater effort should be made to understand how the
technology being applied to bicycles, carts and trailers
today can be adapted for practical applications for urban
transport in poor communities — for example, as the
Institute for Transportation and Development Policy is
doing in Africa and Haiti [see Box 4.3]. The Intermediate
Technology Development Group in England is another
organization that has made improving the performance of
trailers for work purposes in rural areas a priority.
Given the pollution problem of small motorized vehicles,
stronger attempt must be made to promote less polluting
forms of transport. The major benefit of non-polluting,
small sized vehicles, as opposed to the polluting ones that
are in widespread use in urban centres, is clear — a
healthier and more agreeable environment. In Nepal,
Swiss development assistance supported the creation of a
fleet of mini buses, which run on electricity. The minibuses
had been on the road for a few years, under strict
monitoring, when the Nepali government announced that
the three-wheeled polluting Vickram tempo taxis (auto
rickshaws) would be banned from use in Nepal's three
largest cities. [Economist: 1999] Today, despite logistical
and technical problems, all minibus taxis in Nepal run on
electricity or liquid propane gas. Passengers in Kathmandu
have indicated a clear appreciation of travelling with the
exhaust free electric vehicles.
[Pallen: 1997c]
Box 4.3 ITDP: Bringing Bicycles and Trailers to the Poor
In Johannesburg, South Africa, the Institute for Transportation and Development Policy (ITDP), working with the Afrika Cultural
Centre, is building on the success of ITDP's Workbike Project. The Workbike Project involved providing bikes and trailers to
small scale enterprises for transportation and delivery services. In 1999, ITDP began implementing the Workbike Centre Project
— a multi-functional facility that will provide technical support, training, small loans, subsidized bicycles, ‘workbikes’ and trailers
to local artisans and vendors.
Similarly, ITDP has launched a project with an orphanage in Port-au-Prince to establish a bicycle programme where teens will
earn their own bicycles and learn how to use them to navigate the city streets, earning income as bicycle messengers, mechanics,
mobile vendors and collectors of recyclables.
[Hook: 1998]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-59-320.jpg)
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Box 4.4 Improving Small Scale Motorized Transport
Solo-Taxi in the Philippines
In a UNEP-sponsored project, experts were looking at ways to improve the performance of the solo-taxi (motorcycle/one
passenger transportation) for the NorkisTrading Corporation in Cebu, the Philippines. The aim was to develop a new model of
solo-taxi that was both more environmentally and economically efficient. The durability of the motorcycle was considered, as
well as fuel economy and the reduction of hazardous exhaust gases.
There was a 50% reduction in the cost of the overall solo-taxi customization; reduction in material costs reached 70%.
Improvements included increased convenience for driver and passenger (e.g., increased possibility for the passenger to secure
his/her position, hand luggage carrier and adjustable foot rest for passengers). The solo-taxi, as a whole, became less heavy and
more speedy.
[Brezet: 1997]
The Solar Baby of Malaysia
Starting in 1994, Frazer-Nash — a high tech company in Britain — put together a team of engineers and designers to develop a
non-polluting alternative to the petrol and lead gas fuelled motorized auto-rickshaws found throughout Asia. The new vehicle,
named the Solar Baby, saves on energy by powering each wheel by a separate motor (located on each corner behind the wheel).
In the centre of the car is a box of electronics which controls the power fed to each wheel. When driving straight ahead, power
is fed equally to all four corner wheels, but turning a corner produces a huge power saving. The electronic controller will notice
that the outside wheels need more current than the inside wheels, and will automatically deliver equal torque at differential
speeds.
Energy is also saved in breaking. With conventional vehicles, every time the driver brakes energy is wasted in heating the brakes.
With Solar Baby, when the brake is applied the motors are switched to become dynamos, turning kinetic energy into electrical
energy which charges the battery as the vehicle slows down. As well, the solar panelled roof converts radiation from the sun into
electrical energy, providing a trickle of power back to the battery pack, giving the rickshaw around a 15 kilometre extra range each
day. The battery is easily recharged.
While the efficiency of standard vehicles runs at around 20%, Solar Baby scores an impressive 95%. The cost of running the Solar
Baby is one-fifth the cost of the standard auto-rickshaw. Recently, the Malaysian government backed mass production, with fleet
operators now operating five-seaters. The ultimate target is to make Solar Babies available to individual users.
[Pastakia: 1999, 26-27]
The electric
auto-rickshaw
of Kathmandu.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-60-320.jpg)
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This should also involve, where possible and necessary,
the incorporation of cultural, religious and family values.
At the same time that more experimentation in housing
design is taking place, general improvements in
construction and renovation practices should also be
encouraged. The Building Centre Movement in India [Box
4.5] is a good example of what can be accomplished with
local trades people to improve and diversify housing
options and expertise. In countries such as Nepal, many
experts feel that the starting point for improving housing
standards is to encourage a greater use of traditional
building practices:
An approach to housing design that combines the best
elements of both the traditional and modern systems is
seen to be the most suitable in Nepal. Spacial layout,
aesthetics, building materials and construction
techniques should be primarily based upon the
traditional system. Technical details, such as moisture,
water and environmental control and sanitary systems
are best carried out through modern materials and
technology.
[Andhkari: 1998, 11-12]
Box 4.5 The India Building Centre Movement
The India Building Centre Movement aims to assist people by developing appropriate housing delivery systems through
participation, using environmental friendly solutions, and developing the right level of skills among local artisans. The Building Centre
Movement facilitates the transfer of technology from lab to land, promoting the use of predominantly local materials and resources
with appropriate technology inputs — either in the production of building components or in construction techniques. The
strategies adopted by the movement are:
• training and skills upgrading of construction artisans, in terms of alternative, innovative sustainable building materials and
technologies;
• assistance in the production of various building components at the grassroots level;
• utilization of the services of trained artisans, along with beneficiary households, in housing construction employment
generation schemes;
• utilization of locally available and innovative materials;
• reduction of consumption of energy-intensive materials (such as cement and steel), and use of appropriate technology;
• construction of affordable shelters and innovative construction techniques; and,
• provision of housing guidance and information to beneficiaries.
Financial assistance is provided for housing. After this initial assistance, supplementary support is given in the form of soft loans
for equipment, machinery and working capital. To promote the spread of building centres, the government has given fiscal
incentives, such as the exemption of excise duty and a reduction of customs duty for various building elements and components.
The achievements of the Building Centre Movement are:
• the use of cost-effective, environmentally friendly technologies has led to solutions with 15–40% savings over conventional
technologies;
• the network of building centre has spread to 385 locations throughout India;
• over 55,000 masons, carpenters, bar benders, plumbers and other construction artisans have been trained to use innovative
and cost-effective technologies;
• women construction workers have been trained and can earn wages equal to their male counterparts;
• construction worth over 2 billion Indian Rupees has been completed using the innovative technologies;
• innovative technologies have been used in building social amenities and infrastructure building, lending credibility to the use
of such technologies for all applications; and,
• the production of building materials and components required in the application of the technologies has contributed to the
development of micro enterprises.
[Bestpractices on the Web (a)]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-61-320.jpg)
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Similarly in Pakistan, a movement is afoot to reclaim
traditional architectural practices that lend themselves to
a better living environment. The ‘wind catcher’ is a
traditional technology, formerly found in Karachi homes,
that draws wind in to cool overheated houses. [Pallen:
1999] The Aga Khan Foundation in Islamabad has
launched the Building and Construction Improvements
Programme to promote traditional best practices and
improved building materials and techniques. The
programme aims to build and retrofit homes to better suit
them to the climatic extremes of Pakistan, and to eliminate
other problems such as poor ventilation. [Nienhuys and
Saeed Shaikh: 1999]
In terms of housing design, there would appear to be
endless possibilities of coming up with different models to
better integrate work and domestic requirements. A
starting point would be to examine what is presently
occurring informally, in terms of home renovation to
retrofit homes for HBE activity and other purposes.
Trends should emerge within individual communities that
can be studied and possibly enhanced. It would be a good
start to develop new models that reflect what is actually
happening, since informal retrofitting of homes is guided
by realism and pragmatism.
The handloomer weavers in Kancheeprum, India, [see Box
4.6] provide a very practical example of how, in addressing
the problems of home based enterprises, opportunities
are created to address other problems. Another
illustration from India is the case of the basket weavers in
Box 4.7. A very different scenario from Venezuela is
presented in Box 4.8; this initiative is a good example of
how some of the elements outlined in Chapter Three,
such as the use of micro finance, contribute to project
success. While the Venezuelan example did not benefit
from strong government support, the cases from India
highlight the important role a supportive and flexible local
government can play.
Box 4.6 Integrated House-Work Area Project for Handloomer Weavers in
Kancheeprum,
Tamil Nadu, India
Handloom weaving is the main source of income for many Kancheeprum households. The handloom weavers undertake various
tedious tasks related to obtaining the yarn, dyeing it, reeling it, and weaving various textile products. Their quality and productivity
depends greatly on the living and working environment, the nature of materials used for walls and roofing, and the location of
ventilation and light in working areas. Local authorities and financing institutions did not recognize home based handlooming as
a legitimate economic activity carried out in legitimate workplaces.
The Housing and Urban Development Corporation (HUDCO) and the Ministry of Handloom andTextiles developed a project
to integrate economic development and improvements in living standards for handloom weavers. Based on families needs, a
house-cum-workshed scheme was launched which led to a design to integrate house and work space. A participative approach
was followed by the weaver households, architects and engineers. Loans were provided to handloom families to make
improvements.
In 20,000 houses, the combination of employment generation, economic development and conducive habitat development —
integrated at the level of house and community — is demonstrating positive results. In support of the new homes, improved
sanitary facilities and potable drinking water have also contributed to bettering the health conditions of the people in
Kancheepuram.
This model has proved to be very successful and is being replicated in different parts of India, not only for weavers, but for other
home based workers such as beedi-workers, sericulture workers and coir-reelers (i.e., by their respective government
departments).
[Best Practices on the Web: 1998]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-62-320.jpg)
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4.3 Supporting SSE Outside the Home
There is potentially as much promise in devising new
arrangements for SSEs outside the home as within. To
date, experimentation in this area is very limited. There
are examples of attempts to improve the organization and
cleanliness of open markets, such as what was recently
attempted in the Andravoahangy market of Antananarivo,
Madagascar. This is important, but more profound changes
related to street and community planning are in order.
To ensure that created spatial environments — whether
they be found in marketplaces, streets or industrial parks
— facilitates small scale enterprise, certain steps must be
taken. Depending on the type of enterprise, this could
mean:
Box 4.7 Basket Weavers Housing Project in Coimbatore, India
In Coimbatore, a HUDCO project with basket weavers sought to improve working and living conditions. The project's aim was
to provide compact and efficient designs with minimum shelter and working space for the weavers, while causing the least socio-
economic disruption through onsite rehabilitation. The project was a low rise, high density development. Thirty-nine
experimental housing units, demonstrating innovative, cost effective technologies, were combined with 76 conventional housing
components. Beneficiaries were provided with open spaces within units (i.e., verandas/terraces) to accommodate the activities
of basket weaving. In addition, lofts were provided for storage of materials/products. Space was also provided for marketing
activities related to basket weaving.
[Best Practices on the Web: 1998a]
Box 4.8 Barrio 19 de Abril in Venezuela
In the town of Barquisimeto in the state of Lara,Venezuela, a successful multidimensional home based enterprise projet has been
underway for two years. The Barrio 19 de Abril is a community of about 2,500 families, many of whom are very poor. The project,
supported by the La Universidad Central Lisandro Alvarado (UCLA), collaborating with the Community Production Unit — the
lead community organization — promotes the notion of productive housing, calling for the replacement of sub standard homes
with more suitable ones that can integrate economic productive activity. The housing units are designed to permit expansion in
stages, as family size and economic activity expands. Another component is the implementation of a technical training programme
for home based workers.
The families chosen to participate are amongst the poorest in the Barrio. Forty families have been involved in the initial stages
to build their new homes. Another 50 families have expressed their interest and commitment to participate in the second stage.
A loan scheme was developed to allow families to pay for the cost of labour. A number of international NGOs underwrote the
cost of construction materials.
Despite a number of initial obstacles, related to financing and government support, the project achieved the following:
1. The development of a successful highly participatory community self-management model driven by community members.
2. The creation of artisan worker associations from the informal and formal sectors.
3. Technical innovations have been introduced allowing optimization of traditional construction systems, and making extensive
use of environmentally sustainable materials, traditional architecture and building techniques.
4. The development of community waste recycling systems.
[López: 2000]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-63-320.jpg)
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1. Ensuring access to population movement.
2. Close proximity to suppliers.
3. Accessible transport to work sites and wholesalers
on foot or by bicycle.
4. Streets made congenial for economic exploitation,
notably main roads and feeder roads. To
accommodate these functions and at the same time
guarantee a smooth flow of traffic, roads need to be
wide.
5. Maintaining a mix of commercial activity.
6. Outdoor activity relates to the activity inside local
shops.
7. Respect for the type of activity. Small manufacturers
and craftsmen, for example, usually sell directly to the
consumer, and therefore require sites with
commercial potential (i.e., markets instead of light
industrial area).
[Adapted in part from Post: 1996, 34-41]
In terms of street vending, road layouts and street
widening would be two critical areas where changes can
be made. If entrepreneurs can see improvements being
made in the physical configuration of neighbourhoods, it
will be easier to approach them and their associations to
assist, for example, in monitoring the number of
enterprises allowed on a specific street. There could be
further support for other endeavours if, for example,
improved water and sanitation services are in place.
Special areas in settlements and communities could be
designated for entrepreneurial activities that cannot be
accommodated within housing units (as per the suggested
proposal for a low income settlement in Egypt, highlighted
in Box 4.11). Another option is to create common
workshops that are controlled by entrepreneurs. This is
similar to work spaces within residential units, except that
the strategy would be to focus on providing workshops to
serve specific industries. Common workshops would
respect the scale and nature of common enterprises, with
the added possibility of creating economies of scales for
the purchase of equipment and other productive inputs.
Boxes 4.9 and 4.10 are examples from Brazil and Benin of
common workshop facilities for a cross-section of small
enterprises.
Note: In the next chapter, the concept of clustering
industries, to see how environmental technologies and
services can be shared, is re-examined.
Box 4.9 Mutirao Housing Bee 50 Project in Conjunto Marechal Rondon Shanty
Town in Fortaleza, Ceara, Brazil
This project began with the construction of a large shed for training residents in home construction techniques. This led to three
more sheds used by community-based micro enterprises for manufacturing and selling ferro-cement, stone blocks and bathroom
fixtures. Subsequent discussions with community members led to the development of two model homes using material
produced by local micro enterprises. Land was donated by the Fortaleza City government, which also provided the necessary
infrastructure. To date, 52 previously homeless families have been provided shelter.
A 10-store business area has been added, which in addition to providing commercial services, generates rental income that goes
into a fund to repay loans used to start the project. Money has been raised to establish a micro industrial park for such
businesses as metalworking, carpentry, and the manufacturing of house slippers, school bags and toys. The Rondon experience
is being repeated elsewhere in Fortaleza and the rest of the state.
[GRET: 1999]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-64-320.jpg)
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Box 4.10 Common Workshops Facilities in Benin: Woodworking, Metalworking,
Sewing and Dyeing Services
Very few small producers can afford the equipment they need to ply their trade in satisfactory conditions. Since they operate
in an undercapitalized sector of the economy, they are seldom able to borrow investment capital through official financial
channels. Mutual savings and loans associations are endeavouring to remedy this deficiency. Some types of equipment will always
remain beyond the investment capacity of individual entrepreneurs. To address this problem, four common work facilities were
established in Benin to provide the following facilities:
* workshops where machines tools and small portable equipment are available for use on a fee paying basis;
* a unit for designing new products and developing prototypes — this also houses catalogues and other documentation that
create an environment conducive to technological innovation and self-training;
* a space to serve: a) as storage for raw materials and supplies that mutual associations purchase wholesale for retail (i.e.,
slightly below market prices); and, b) as a sales and display area for craftsmen's products;
* a room where craftsmen's trade meetings are held, and where literacy and technical training courses are given.
The common facilities workshops were found to provide a convenient place for craftsmen to meet and exchange views. They
discuss problems, share information on trade and technical matters, discuss social issues, and consult each other on their work.
[Maldonado: 1993]
Box 4.11 SSEs and Community Upgrading in Telal Zeinhoum, Egypt
The Telal Zeinhoum settlement, located in the heart of Cairo, has been scheduled for redevelopment. Telal Zeinhoum has a
population of about 20,000, with a high percentage of young, illiterate and poorly educated people, who are unable to procure
work other than the most menial. Local authorities have determined that Telal Zeinhoum will be revitalized in two ways:
* demolition and building of new houses and upgrading of existing sub standard housing; and,
* supply of infrastructure (social, economic, water, sewers and electricity).
To begin the process of how these changes will be implemented, planning workshops and socio- economic surveys were carried
out. The community, government and consultants participated in the workshops. One of the outcomes of the workshops was
the need to concentrate on economic issues. Accordingly, the upgrading philosophy was built upon economic issues and
promoting an area development plan that includes income generation — in particular home based enterprises. Planning
considered the importance of the proximity of the commercial units from the homes of the residents, particularly for the
women.
Lack of experience working with funding sources was identified as a major problem. A clear consensus was expressed on the
need to create suitable home work space, and industrial areas outside Telal Zeinhoum that are unsuitable as HBEs or in the
community proper. Another aspect of the plan involves increasing the number of commercial shops and workshops to create
jobs for youth.
Participatory approaches were used throughout the process to secure agreement on all proposals. An NGO will be created
that will be the government partner in the project. It will manage a community micro finance scheme for income generation
activities and home improvement in upgrading areas.
[El-Sheikk: 2000]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-65-320.jpg)
![4.4 Selective Greening in Support of SSE
Activity
The notion of managing cities as ecosystems is gaining
ground. The urban ecosystem model seeks a better
balance between the natural environment and built-up
spaces in urban centres. [Stren: 1994] Although an
ecosystems approach may not be the optimum way to
address SSE environmental problems, it is possible that the
selective greening of poorer communities could play an
important role in local strategies related to SSEs. There is
growing understanding and appreciation about the
importance and functionality of green spaces and trees in
urban poor communities.
Bhatt, reviewing studies of informal settlements in India,
found that the "public open spaces in these settlements —
... typically small in scale — are rich and diverse in spatial
qualities, lively, full of activities and well integrated with the
housing." [Bhatt et al.: 1990, 4] Similarly, a study of the
slums of Indore, India, by the CMCH reached the following
conclusion:
At first glance, landscaping seems an extraneous, if not
an irrelevant issue in the context of low income urban
shelter. If landscaping is considered a frill in most
conventional building projects, it is little wonder that it
plays such a minor role in what is mistakenly referred
to as basic housing. Perhaps this is why tree-planting
programmes are absent from most (housing) projects.
However, in existing slums and unplanned settlements,
trees are conspicuously maintained, protected and
planted by the inhabitants — without official
assistance, and with some considerable labour. Trees
provide shade, play the role of public buildings, public
gathering place, a substitute for porches and covered
outdoor spaces, religious space, classroom, and have
important aesthetic value.
[Rybczynski et al.: 1994, 43]
The purpose of selectively greening is to create versatile
urban spaces, which can serve a variety of purposes and
free up other locations for other uses. This is not to say
that trees and grass should substitute for a school room,
a religious temple or a community centre. Yet, in the
absence of resources and space, greening is possibly one
way to accommodate a variety of interests and needs,
which may otherwise be neglected as a result of the
presence of SSEs in homes and elsewhere. Planting trees,
shrubs and grass is not costly. The major investment
comes in the time required to ensure that everything is
planted in the right place, the right way and for the right
reason.
As will be discussed in the final chapter, engineered or
constructed wetlands and ‘living machine’ processes utilize
living plants and irrigation systems to break down
chemicals and other pollutants stemming from industrial
activity. Urban forestry and urban agriculture can also be
encouraged to green and to create economic
opportunities for entrepreneurs. Urban agriculture,
selected greening, engineered wetlands and living
machines, and urban forestry can all become part of a
multifaceted approach in reshaping urban spaces to
provide more options to accommodate SSEs, while
improving the overall environment of a city.
4.5 An Ideal Community Design
The design in Figure 4.5.1 is offered as an example of what
can be strived for in community design on how to
assimilate SSEs. Different housing designs are used to
facilitate HBE activity. Common workshops are present to
meet the needs of specific industries. Open space is
available for street vendors and kiosks and bike lanes, join
the different sectors of the community. Houses with store
fronts benefit by being located where there is a high
volume of pedestrian traffic.
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5.0 Introduction
Chapters Three and Four presented an assortment of
ideas and suggestions on how to work with people,
governments and communities, and the order, spatial
arrangements and physical characteristics of the
communities in which SSEs flourish. This chapter looks
more closely at the inner operations of SSEs, in particular
manufacturing SSEs, to see where environmental
improvements can be made. Energy, technology, science
and workplace design are all aspects of the internal
operations of SSEs where changes are possible.
The chapter begins with a section on OHS practices for
SSEs. OHS practices are a concrete example of how to
improve the workplace from a health, environmental and
economic standpoint, without incurring significant expense
or necessitating great scientific or technical support.
5.1 Occupational Health and Safety
Standards for SSEs
The disturbing part about the absence of OHS standards
in the SSE sector is that pilot projects have demonstrated
that cost effective interventions can lead to significant
improvements in the safety of the workplace, while at the
same time improving production. Moreover, smaller
enterprises appear to be more conducive to improving
productivity by means of better working conditions:
Small enterprises differ from larger firms in that
productivity in small enterprises is usually low and
responsive to improvements. Further, in small
enterprises, praise is taken personally, there is only one
decision-maker who is action orientated, and the owner
has at least a paternalistic interest in workers.
Changes can thus be introduced rapidly, and small
scale interventions can have a major impact.
[Di Martino: 1995, 2-3]
In the end, improved OHS practices may be where the
critical breakthroughs will be made to improve overall SSE
environmental standards. Improved OHS standards may
mean a simple redesign in equipment, the recon-
ceptualization of floor space, the introduction of
protective gear, or appropriate disposal bins and
containers. Such changes are simple to make but need to
be thought out, as the smallest gesture towards
improvement can backfire. For example, SSE workers
have been known to routinely refuse to wear protective
masks and gloves for reasons of comfort. [Pallen: 1997a]
It is also important that OHS schemes aim to improve the
financial bottom line of SSEs. Given the fragile financial
status of SSEs, increased profit will always be a key
motivation for entrepreneurs. This is not to say there are
not other motivating factors. OHS activities aimed at
ensuring the safety of children and other family members
from workplace hazards is another selling point.
In the end, simple principles related to being practical,
participatory, cost-effective, profit enhancing and
productivity raising will appeal to SSEs. Boxes 5.1, 5.2, 5.3
and 5.4 present four different perspectives on making
OHS improvements in SSE workplaces. Through the case
studies, one sees how local governments, donor
organizations, NGOs (both local and international),
entrepreneurs and their associations, and even large
enterprise could all play a leadership role.
Chapter Five Improving the Environmental Performance of SSEs](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-70-320.jpg)
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Box 5.1 ILO WISE in South America
The ILO has developed an approach to the improvement of working conditions and productivity in small enterprises with a
training method called WISE (Work Improvements in Small Enterprises). The WISE approach was deemed necessary, as
traditional inspection-based methods for protecting workers are often inadequate for small enterprises.
The training methodology of WISE includes these basic principles:
1. Build on local practices.
2. Focus on achievements.
3. Link work conditions with other management goals.
4. Use learning by doing.
5. Encourage exchange of experience.
6. Promote workers’ involvement.
The technical content of each programme is:
Materials, storage and handling: Racks, carts and other low cost improvements help recover misused space, lower capital costs,
eliminate unnecessary operations, and upgrade work space appearance.
Workstation design: Tools and materials placed within easy reach, good use of jigs and fixtures, and avoiding work in strained
postures, resulting in higher productivity and better quality products.
Productive machine safety: Use of feeding and ejecting devices, and redesign of machine guards to increase productivity and
eliminate hazards.
Control of hazardous substances: Dust fumes and other contaminants interfere with efficient operations, damage machines and
products, and are harmful to workers’ health. Through simple and inexpensive means, problems can be reduced and wasting of
valuable chemicals can be stopped.
Lighting: There are many low cost ways to improve lighting conditions by making better use of natural local light.
Welfare facilities and services: Welfare facilities are critical for improvement of workers’ health, morale, motivation, job satisfaction
and attendance.
Work premises: Most small enterprises are located in buildings which were not designed for their current use. There are always
ways to enhance productivity by improving the work environment.
Work organization: Modern techniques, such as task combination, multi-skilling, a group workstation or product-orientated
organization, can be the key to improving workers’ motivation and work efficiency.
Work involvement: The training programmes provide entrepreneurs with an opportunity to learn the value of making better use
of their workers’ skills, abilities and ideas.
In the 1992-93 period, 136 enterprises from South America participated in WISE training workshops. Actions plans identified
1,042 workplace improvements to be implemented. Within a short period after the workshops, 623 of the improvements were
implemented, another 135 were in progress, 233 still planned, and another 51 were dropped.
[Di Martino: 1995, 1-4]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-71-320.jpg)
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Box 5.2 ILO — Promoting Productivity and Social Protection in the Urban Informal
Sector, Dar es Salaam
As part of an ILO project, 11 informal sector clusters in two districts in Dar es Salaam were included in a study on OHS
practices. The prevalent problems found in the clusters included: exposure to occupational hazards, poor welfare facilities, lack
of occupational health services and protective equipment, use of unsafe equipment/tools, poor workstation design, housekeeping
and material storage, poor personal protective devices and work organization, as well as a lack of communication channels with
the authorities. The micro enterprises included in the study were:
• basic metalwork including metal products fabrication;
• timber and woodworking;
• tailoring and shoe making;
• market products retail business;
• mechanical and electrical workshops;
• arts and crafts, including carving, basket and carpet making;
• cooking and vending food, including fruits and vegetables;
• flour milling;
• vegetable growing;
• yarn dyeing;
• repair of plastic containers;
• fishing, fish processing and selling;
• used tire engraving and selling;
• stone crushing.
Short-term pilot intervention programmes were initiated to improve working conditions and to provide OHS services to the
clusters. Cluster operators were trained in first aid, and health care workers were trained to undertake health promotion
activities in the clusters. Safety and health committees were created and their members were trained in basic OHS. City council
resumed sanitary services in the clusters. Other inputs included provision of first aid kits and drinking water facilities.
Results of the Pilot Intervention
1. Eleven informal sector operators from 10 clusters have been trained in first aid, and 28 health care workers (10 nurses, 10
clinical officers and 8 medical officers) in occupational health services.
2. First aid services in nine of the clusters had been established. Health care workers visited the clusters to check the health
of the operators and have been given health education in various occupational health topics.
3. A total of 61 operators — members of the Safety and Health Committees from eight trades — were trained.
4. Some practical improvements have been carried out in four clusters, including:
• daily sweeping/cleaning of work sites;
• arrangements of materials;
• wearing of clean clothes/uniforms: and,
• daily collection of waste to a central collection point.
5. Five other clusters have started mobilizing funds for maintaining toilets.
6. Waste disposal by the city council has improved in one cluster, while a private contractor has been hired by another to
remove and dispose of waste.
7. City council sanitary services to the clusters have generally improved, due in large part to better communication.
[Forastieri et al.: 1996]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-72-320.jpg)
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Box 5.3 CIDA Awareness Raising for Environmentally Sound Practices in Recycling
of Used
Batteries in Dhaka, Bangladesh
Since the early 1960s, the recycling of old batteries has grown as an income generating activity in the slums of major cities in
Bangladesh. In a typical battery recycling operation, dismantling includes opening the battery casing, taking out the lead-oxide
plates and separators, and draining the sulphuric acid. The batteries are then rebuilt using new leads, plates and separators, and
sulphuric acid. Environmental impacts are soil and water pollution from drainage of used sulphuric acid.
Initial investigations revealed significant environmental and health risks with present battery recycling practices. For this reason,
CIDA and the Integrated Health and Development Centre in Dhaka decided to launch a pilot project with the following broad
objectives:
• to further analyze battery recycling activity and its associated risks;
• to raise awareness among the different actors, including the enforcement and policy making agencies, about the occupational
hazards of battery recycling activities and relevant policy formulation.
• to demonstrate mitigation measures to carry out recycling activities in environmentally and OHS sound ways.
The project calls for collecting information on key issues and the views of workers, specifically women, adolescent girls and
children. Chemical analysis of the blood samples will be done under the project with respect to indicators on health and relative
environmental hazardous/toxic levels. Three hundred workers from two study areas in Dhaka will be involved in the study. The
Bangladesh Used Battery Breakers Association is expected to be involved in a subsequent awareness campaign. Twenty-three
day awareness raising sessions for 300 workers will be conducted.
[CIDA: 1997 and Child: 1998]
Box 5.4 The Brassware Workers of Aligrah, India
Aligarh is a small town situated around 180 kilometres south of New Delhi in the state of Uttar Pradesh. The brassware industry
is the dominant feature of the local economy. Much of the brassware industry is home based, involved in the production process
in the casting, filing, grinding and polishing stages. OHS standards are non-existent, with workers operating in close proximity to
fire furnaces, handling molten metal and scorching hot casted products. Casting is also a polluting activity where acidic washing
of materials is commonplace.
Nevertheless, workers rarely wear protective clothing or shoes. Children can be found playing around the furnace and
sometimes helping with secondary tasks. The risk of accidents is very high. There are other OHS standard issues related to
cramped, filthy, cluttered and poorly ventilated conditions. The work is done on a contractual basis with large local companies,
who take no responsibility for the workers’ and family safety.
International Resources for Fairer Trade (IRFT) is a Bombay-based development agency dedicated to fair trade, and a partner of
the UK-based charity,Traidcraft. IRFT, working with Prashant Enterprises which is one of the large companies contracting home
based brassware workers in the area, developed a medical benefits and health and safety equipment programme for workers.
However, the OHS activities were met with indifference on the part of workers, who refused to wear protective equipment.
This led Prashant Enterprises and IRFT to decide to experiment, by providing a casting facility with a 50-furnace capacity and a
requirement that all Prashant contract casters use the casting house to work. The casting house is well ventilated, well illuminated
and has sufficient space between furnaces. Children are not allowed into the facility. Casters could choose to work at any time
they pleased, and protective clothing is provided and inspected.Today 10 furnaces are operational and long-term international
contracts have been won with foreign companies, largely a result of the improvements made in OHS standards.
[Singh and Kowale: 2000]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-73-320.jpg)
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5.2 From Waste to Green Pastures
Recent pilot projects and research demonstrate that SSEs
could be even more creative with the waste and pollution
created by SSEs and other enterprises. A key weapon
could be the use of natural systems that break down toxic
and pollutant elements. ‘Engineered wetlands’ and the
aptly named ‘living machine technologies’ are designed to
utilize living plants to complete the chemical conversion of
waste to inoffensive matter.
In Asia, there is considerable experience with engineered
wetlands [see Pallen: 1997a, 47]. Engineered wetlands are
used to break down sewage that is then channelled into
fish farming systems. Throughout Asia, in cities such as
Calcutta, the reuse of human waste in fish farming systems
dates back centuries. [Edwards: 1992] There are a wide
variety of models in operation, in both urban and peri-
urban areas. In addition to their aesthetic appeal and fish
farming potential, the cost of constructing engineered
wetlands for sanitation purposes is in general 25% to 40%
cheaper than a standard sanitation system providing
comparable performance.
[Weil: 1998]
It is always surprising what can be achieved by using the
inherent capacities of nature. Pioneer work related to
how plants and flowers can render heavy metals and
pollutants inoffensive is very promising. Research in
support of this publication identified over a hundred
different uses for engineered wetlands for treating
industrial, human and agricultural waste and pollutants.
That costly infrastructure or technology can be avoided in
favour of approaches which introduce natural systems into
the urban and peri-urban landscape is very encouraging.
However, more research and experimentation is required
related to how industrial waste and pollution can be
treated by natural systems.
The example of the Monfort Boys School Project [see
box 5.5] demonstrates how source pollution can be
eliminated, while creating employment through new micro
enterprises and contributing to sustainable agricultural
production.
Figure 5.2 is another example of what could be possible if
a litle imagination is used.
In Figure 5.2, an engineered wetland is established to treat
the pollution of a polluting SSE cluster. The enterprises are
located around the central body of water where the
wastewater is discharged. From there the wastewater
moves through a serie of stages where different water
based plants are used to neutralize toxic elements such as
mercury, chronium and arsenic. At each stage, the
polutants become less toxic. Finally, the water enters the
river unpolluted. The area surrounding the engineered
wasteland is highly urbanized.
5.3 Clustering and Common Facilities
As mentioned earlier in this document, the clustering of
enterprises working in the same or related sectors is a
highly common phenomenon. Improved goods and
services, specialized labour, and the availability of raw
materials, are some of the economic advantages of
clustering. Furthermore, within the scope of these
economic benefits lies an opportunity to promote greater
environmental efficiency. [Werna: 1997, 397] For
example:
• Waste treatment facilities can be introduced on an
appropriate scale to reduce pollution. This includes
novel approaches, such as engineered wetlands to
target a particular pollutant or industry.
• Enterprises and suppliers providing environmental
goods and services can locate close to the clusters.
• Through clustering, there is also the possibility of
establishing more appropriate training programmes
and OHS resources through such acts as reinforcing
local health services. Dues can be payed by the
clustering enterprises to ensure services.
• Educational awareness and outreach campaigns on
OHS and environmental issues can target clusters.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-74-320.jpg)
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Box 5.5 The Monfort School Project: Beer — A New Source of Small Enterprise
Development
In a promising agricultural experiment, a boy's school is linking five different micro enterprises so that the waste from each
becomes a key input to another. The sludge of a large Fijian brewery is the source of pollution from which five new enterprises
would be established. What was a troublesome pollutant would be turned into crops of fresh mushrooms, chickens, fish and
vegetables, and fuel for electric power. Working with the Monfort Boys School for orphaned and disadvantaged boys, the United
Nations University developed this project, which can be described in six stages:
Stage 1: At the brewery, the waste from the brewer's spent grain is collected. The waste grain had been destroying local marine
life. It is now recuperated and used as a fertilizer for mushrooms. The brewer's grain is, of course, free.
Stage 2: Mushroom Growing —Three kinds of mushroom have been selected to grow due to their high market value. Residue
from mushroom fertilizer is then used to feed chickens, as part of the second micro enterprise. The mushroom waste is both
nutritious and safe for the animals, and makes an excellent feed.
Stage 3: Chicken Raising — Animal waste is collected and put into a decomposer for separation. Inside the decomposer, the
chemicals in the wastes will separate the constituents into either energy or fertilizer production.
Stage 4: Methane Gas Production — Methane is produced from the chicken waste, and is collected and bottled to operate the
school generator. About three gallons of gasoline a day will be produced, an appropriate amount to service the school. Later,
a pipeline will be built to carry the gas to the school buildings. Solid matter is processed into fish food.
Stage 5: Fish Ponds — Meanwhile the solid matter that is left after the gas is bled off will move in a solution of water through
several compartments of a digester, at each stage losing some of its bacteria and some of its potential for spreading illness. When
it emerges from the last compartment, this decontaminated manure will be neatly converted into the same ‘NPK’ nutrients —
nitrogen, phosphorus and potash. With the help of gravity, it will then flow through three cleansing ponds, where bacteria,
plankton and other micro scavengers will consume any residual, unwanted parts of original animal wastes. What emerges in the
fish pond is a perfect fish food. Nutrients in fish water will be used for growing hydroponic vegetables on top of the pond,
reducing the quantity of muck left for disposal.
Stage 6: Vegetables are harvested for consumption or market, leaving little or no waste at the farm. On top of the pond, more
food will be grown hydroponically. Flowers, strawberries and high value vegetables, such as golden needle, will be grown floating
on the water, so that their roots can draw nutrients from the dissolved fish waste.
[Kane: 1997]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-76-320.jpg)
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Box 5.6 below, illustrating the rattan industry of Indonesia,
is a good example of how economic and environmental
objectives can be met through clustering. Box 5.9, later in
this chapter, describes a new initiative by CIDA to provide
brickmaking clusters in Egypt with a cleaner burning
natural gas energy.
In India, common treatment facilities are at various stages
of installation to support clusters of small scale industry,
from tanneries in Madras to textile dyeing inThirupur [see
Box 5.7]. The India Ministry of Environment and Forest
has experience in creating common treatment facilities for
clusters, and considers it an important part of overall
planning for infrastructure and services for clusters, which
is presently very weak. [MSG Environmental Services:
1999] The Government of Indonesia has actively pursued
policies to cluster same-sector enterprises by providing
shared services.
While the clustering of industries may have environmental
and economical advantages, Chapter Two discussed how
the risk of serious negative environmental damage is much
higher. In other words, all the pollution and risk factors
can be concentrated in a small area with no proper
controls in place. Problems such as air emissions,
discharges of effluent, storage and disposal of wastes,
industrial accidents, spills and nuisances such as noise
could be further exaggerated.
5.4 A New Look at Technology
It has been over 25 years since E.F. Schumacher wrote
Small is Beautiful, which promotes among other ideas the
notion that technology should and can be developed to
create more meaningful employment for people while
not causing environmental damage. [Schumacher: 1974]
The conditions under which the vast majority of urban
SSEs operate could not be any further removed from the
idyllic world envisaged by Schumacher.
Yet, considerable latitude exists to develop and promote
technologies to reduce environmental risks and improve
the working conditions of small scale entrepreneurial
activity, which would bring this world more in line with
Schumacher’s vision. The example in Box 5.8 of the
Medleri Charkha, a foot-operated, self-winding spinning
wheel, is a modest demonstration of how technological
change can have a positive impact on production, working
conditions and environmental well-being through
incremental improvements in technology capacity.
Box 5.6 Small Scale Production in the Rattan Industry in Tegalwangi, Indonesia
The historical concentration of rattan firms aroundTegalwangi has been the result of numerous initiatives by regional government
to encourage the creation of enterprise clusters. Clustering is a precondition for government assistance. InTegalwangi, clustering
has meant that raw materials are more readily available to small producers. Rattan is brought in from the distant islands of
Kalimantan and Sumatra. Prices charged by local traders are higher than those imposed by outside merchants, but credit
concessions make them accessible to producers with little capital.
For small scale producers, proximity to each other also means the possibility of utilizing more advanced machinery. For instance,
one very small producer is able to produce semi-finished goods for a large exporter, thanks to his access to a steamer (to bend
the larger rattan canes into frames) owned by a neighbour.
Physical proximity also facilitates transportation. Small producers make use of traditional means of transport, such as bicycles,
hand carts and cycle-rickshaws, to carry materials, parts and finished goods which could not be employed if distances were
greater.
The flow of information concerning demand, prices and levels of wages is also facilitated by the concentration of small firms. As
well, skill transmission is an integral part of family and neighbours' daily exchanges, and it is made easier by proximity. The
importance of this informal training receives recognition through the higher wages paid to workers originating from the village.
[Smyth: 1992, 53]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-77-320.jpg)
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Box 5.7 Common Effluent Treatment Plants Initiative
In India, the Ministry of Environment and Forest has developed a scheme for setting up common effluent treatment plants for
small scale industries regrouped in clusters. Financial assistance is provided to industrial associations, in the form of subsidies (i.e.,
25% of project costs from central and state governments) and loans (i.e., 30% of project costs at reduced rates of interest from
the Industrial Bank of India). The participating industries are expected to contribute the remaining 20% of the project costs.
[MSG Environmental Services: 1999]
Box 5.8 The Medleri Charkha: A Foot-Operated, Self-Winding Spinning Wheel to
Recycle
Waste Silk
In 1983/84, IDS (India Development Service) approached theTOOL Foundation (Transfer ofTechnology for Development) with
the request to assist in the development of appropriate pre-weaving technologies. The traditional technology was ergonomically
difficult to handle, and productivity and quality were rather low. TOOL assigned a technician to work on improving existing
technologies.
In 1986, the Medleri Wool Charkha, a foot-operated, self-winding spinning wheel, was developed in close co-operation with
spinners from Medleri village. After various prototypes, the final design was put into production by Phoenix Products. TOOL
started the adaptation of this spinning wheel for the spinning of silk waste. This adaptation was successful, and Phoenix Products
has started the production of the Medleri Silk Charkha as well.TOOL assisted Phoenix in the production and the setting of
quality standards.
IDS and TOOL developed a training programme for spinners and trainers for the introduction of the Medleri Wool Charkha.
Maintenance centres were established, with staff receiving technical training in maintenance and repairs. Requests for this new
technology are coming from organizations throughout Asia, who are expressing interest in the Medleri Charkha for spinning silk-
waste, cotton and wool.
Features of the Medleri Charkha:
• metal design — more durable than wood, and in India also cheaper;
• foot-operated, with self winding mechanism;
• winding speed regulated by adjustable brake mechanism;
• possibility to mount either a low speed or high speed spinning mechanism;
• easy adjustment of driving belt tension;
• produces strong, even yarn for better, longer lasting products;
• most spinners with a Medleri Charkha spend less time on spinning the same quantity of wool yarn, as spinners who use
traditional technology;
• will spin any quality of wool;
• made from locally available parts;
• easy to maintain.
[TOOL: 1997]](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-78-320.jpg)
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Most technological investment in developing countries is in
support of large scale industry, despite the fact that
technology employed by SSEs generates much higher levels
of employment. [Stewart: 1989] It would be much easier
for countries such as Canada to provide suitable
technologies, if SSEs in Canada already employed the same
technologies. Since this is not the case, NGOs, donor
groups and government departments must be encouraged
to place a greater emphasis on technology development,
given there is now a much better set of development skills
— in areas such as participation and financing — to make
sure the technologies achieve their social, economic and
environmental objectives.
Large and medium size enterprises (LMEs) in developing
countries with the resources for product development
should be encouraged to work with the SSE sector to
develop new technologies. LMEs are well placed for
understanding how the SSE sector operates, and how
opportunities can be exploited. What company would not
want to develop inventions, like the handloom wheel
outlined in Box 5.8, given the potential market?
It is also important that existing technologies be promoted.
In India, Dasgupta reports that some SSEs are not aware of,
nor are interested in, some of the low cost options which
are presently available. For example, small scale metal
finishing and electroplating enterprises can considerably
reduce ground contamination by toxic effluent, by using
cheaper alternatives to the drag system presently
employed. [Dasgupta: 1998] In Chile in 1992, a fair was
held, bringing together 110 technologies invented or used
by the informal sector that were deemed to have positive
benefits for the environment. [Bengstsson: 1995] There
are many generalizations regarding the limited ability of the
SSE sector to work with and develop new technology.
Until this is proven to be the case in a given city, settlement
or sector, technological solutions should not be discounted.
5.5 Energy
A coming explosion in the potential of non-polluting
renewable energy has been predicted. Competitive (re
price), clean and adaptable energy sources have been
envisaged for home, transportation and industrial
applications. Over the last ten years, only incremental
progress in technological capacity and price have been
made in the renewable energy field. However, the boom is
coming. Increasingly, national governments, business, utility
companies and non-governmental organizations are
making greater investments into understanding how
renewable energy can be used. Large multinational energy
and automobile companies are banking on renewable
energy, directly promoting its use in the developing world.
[Hook: 1999, 1]
There is no reason why, one day, developments in
renewable energy in industrial countries will not lead to
accessible and practical applications in developing
countries. From the urban and peri-urban SSE standpoint,
renewable energy can already be competitive where
dependable grid energy is not available. Renewable energy
is already outperforming certain types of energy sources,
such as kerosene lamps, candlelight and batteries in rural
areas. [World Bank: 1996] As the World Bank points out,
solar energy can offer higher quality light, improved safety
levels, cleaner indoor air and greater reliability, than other
energy sources. [1996, 14]
To date, considerable experience has been gained in rural
areas and mountainous zones in promoting small scale
applications of renewable energy. This includes wind, solar
and biomass. Already there are a wide variety of
renewable rural energy projects supporting rural
enterprise. Enersol and the Solar Electric Light Fund are
two international NGOs that have considerable
experience promoting solar energy in support of small
enterprise.
Peri-urban areas are a likely point of entry for renewable
energy, where hooking up to the grid can be expensive and
power interruptions are common. In Burkina Faso, solar
water pumps have been successfully installed in a peri-
urban zone of Ouagadougou. Solar water pumps are more
expensive and technically harder to install and maintain
than simple solar panels to produce electricity. [Tounkara
and Schiller: 1998] In a recent study in India, SSEs claim
their greatest preoccupations regarding energy are
shortages and blackouts, and the high cost being paid for
supply. [MSG Environmental Services: 1999] If renewable
energy can deliver, in terms of cost and reliability, then there
is no reason why it cannot be competitive with unreliable
grids, unsafe kerosene lamps, candlelight, batteries and
diesel motors.
Although far away, one day renewable energy capacity will
be more in line with what our imagination would like it to](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-79-320.jpg)
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be. In the meantime, there is a lot of room to work with
existing energy technology to improve efficiency, and
reduce pollution and costs. In India, clay brickmaking, glass
making, steel re-rolling and foundries are all sectors of SSE
activity suffering from energy inefficiencies. [MSG
Environmental Services: 1999] In these industries and
others, energy efficiency improvements can be made.
In an important recent development, CIDA, in
collaboration with the Government of Egypt, announced a
project to provide brickmakers in Egypt access to natural
gas — a much cleaner alternative to the present energy
source [see Box 5.6]. As countries like Egypt, Pakistan and
Bangladesh continue to develop their natural gas capacity,
there will be more opportunities to benefit from the
expertise of natural gas producing countries, such as
Canada, to serve small industries such as brickmakers.
5.6 Appropriate Environmental
Management
Practices
In industrialized countries, a wide array of environmental
management practices are being developed in relation to
industry. Environmental audits, environmental assessment
practices, workplace redesign, monitoring measures,
inspection standards and new forms of legislation are at
the forefront of finding new ways to better harmonize the
needs of the environment with industry. As most of these
tools are intended for larger, often mechanized,
enterprises that have the time and resources to make the
necessary investment, these may offer little of value to
SSEs.
Moreover, in industrial countries, there are often
government agencies present to provide direction,
financial assistance and training, in addition to the tools.
Some larger size SSEs, which are more economically
solvent, could make use of some of these environmental
management tools, but in most cases there would not be
a natural fit. In this respect, it is important to keep in mind
that although enterprises may produce the same form of
pollution, the solutions for each enterprise must consider
their particular size and local circumstances. [Dasgupta:
1997, 294]
Box 5.9 Cleaner Energy for Brickmaking Clusters in Egypt
There are approximately 2,000 small scale brick factories in Egypt, clustered in urban and semi urban areas, and operating on an
inefficient and dirty combustion fuel known as mazout (a heavy residual oil). Mazout is the prime energy source for brick furnaces
operating 24 hours a day. Brickmaking is very labour intensive, with each factory employing 100 to 150 people — between
200,000 to 300,000 workers in all. In addition to high sulphur oxides, carbon monoxide and hydrocarbon emissions, Mazout fuel
creates highly unsafe conditions for workers and their families. Health problems range from eye irritation and nose bleeds, to
lung cancer and cardiac difficulties.
The Egyptian Ministry of State for Environmental Affairs identified small scale brickmaking as a priority for introducing significant
technology improvements to reduce pollution. Egypt is actively establishing the necessary national infrastructure to facilitate the
widespread use of natural gas. This includes supplying service stations, and providing small scale industry access to natural gas.
Responding to a request made by the Giza Union of Brickmaking Factory Owners, a pilot project has been approved to use
growing Canadian private sector capacity in the field of natural gas conversion technologies to convert brickmaking over to
natural gas. Two brickmaking clusters have been targeted. The project will be managed through CIDA's Egypt Environmental
Initiatives Fund (EEIF), which assists small and medium enterprises to improve their environmental management capacity. The
Egyptian government has agreed to build and cover the cost of the natural gas network into the cluster areas. Innovative financing
for environmental improvements, developed by the EEIF, Egyptian banks and the Government of Egypt, will be used to cover
other costs.
It has been estimated that the Canadian technology could lead to a 75% reduction in greenhouse gas emissions, with even greater
reductions in other pollutants.](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-80-320.jpg)
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74
Environmental assessment (EA) — the practice of
evaluating and anticipating the environmental impact of a
project, and identifying appropriate mitigation measures
— is probably the best example of an environmental
management tool that in principal should be of use to all
enterprises regardless of their size, location, productive
inputs and equipment. Yet EA is still searching for its place
as an environmental management tool in developing
countries. CIDA is one development agency that is
putting considerable resources into finding ways to make
EA a more practical and appropriate development tool
[see Pallen: 1996]. EA and other environmental
management practices have the potential to be useful, as
long as an effort is made to modify them to the scale and
circumstances of the enterprise.
5.7 Eco-Industrial Parks
One approach found in industrial countries that could
adapt nicely to urban and peri-urban areas in developing
countries is the eco-industrial park (EIP) concept:
There is a movement in industrial countries to a new
kind of industrial development that uses resources
dramatically more effectively and refines the
manufacturing economy. Current trends in sustainable
development and business management are converging
on a new model of industrial operation exemplified by
the discussion of eco-industrial parks ... Eco-Industrial
Parks (EIP) strive simultaneously to increase business
success while reducing pollution and waste. Rooted in
the emerging discipline of industrial ecology, an EIP
mirrors natural systems.
[Cohen-Rosenthal et al.: 1999, 1]
Lowe and Warren add:
An eco-industrial park is a community of manufacturing
and service businesses seeking enhanced environmental
and economic performance through collaboration in
managing environmental and resources issues including
energy, water, and materials. By working together, the
community of businesses seeks a collective benefit that
is greater than the sum of the individual benefits each
company would realize if it optimized its individual
performance only ... the goal of an EIP is to improve
economic performance of the participating companies
while minimizing their environmental impact.
[Lowe and Warren: 1996, 7-8]
Cohen-Rosenthal point out that it is not uncommon for
"two companies and or even more to develop mutually
advantageous relationships where the waste products of
one company form a valued input product for another."
[Cohen-Rosenthal et al.: 1999, 1] There are close to 20
EIPs in North America. The interesting aspect of EIPs is
the tendency to use a wide variety of approaches to
customize the EIP to a location:
(EIPs) draw on different perspectives and disciplines to
help formulate their ideas. All use an industrial ecology
framework to help inform their development. Some
draw heavily on urban and land use planning that has
been used in economic development and recruiting.
Others are more engineering driven seeing the
possibilities of creating pipe to pipe interconnections.
This perspective recognizes new technological
possibilities especially in the development of connecting
technologies that support regional industrial recycling.
[Cohen-Rosenthal et al.: 1999, 1]
Already in developing countries one observes, through
informal recycling and waste management, a starting point
for understanding how the concept of the eco-industrial
park might take shape. However, to make the EIP concept
more relevant implies going beyond present practices to
see the potential of recycling, waste management and
waste exchange on another level.
The way to make the EIP concept work would be to not
limit the concept to small enterprise, but to include all
types of industry. This will create more options. There
could be further niche opportunities for enterprise
creation for SSEs providing repair and rental services, as
remanufacturers and recyclers, as well as sellers of used
materials and equipment. An interesting starting point
could be in peri-urban zones where there is a mixture of
industrial and agricultural activities, and solid and liquid
waste management services are often poor or non-
existent.
5.8 New Environmental Enterprises
The premise of this document has been finding ways to
reduce negative environmental impacts. Yet, another
course of action would be to stimulate the creation of
urban SSEs that could provide goods and services which](https://image.slidesharecdn.com/55a2a375-7f2f-4ad4-8b3c-305b500eee1e-150401134609-conversion-gate01/85/Reinventing-the-City-81-320.jpg)
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Reinventing the City
- 2. REINVENTING THE CITY: THEROLE OF SMALL SCALE ENTERPRISE Asia Branch Dean Pallen 2001
- 3. April 2001 Catalogue No.:E94-310/2001 ISBN: 0-662-65663-6 Printed in Canada The information contained in this document does not necessarily reflect the policies of the Canadian International Development Agency.
- 4. TABLE OF CONTENTS Acronyms ExecutiveSummary 1.0 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 The Place of Small Scale Enterprise in a New Era of Urban Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 A Changing Development Context and the Rational for this Document . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.3 Regarding the Content of this Publication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.4 Chapter Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.5 Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.0 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.1 The ‘Survival Economics’ of Urban SSEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2 The Home as a Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.3 Community Space as a Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2.4 Transportation and Urban SSEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2.5 The Blurring Distinction Between Urban and Rural Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.6 The SSE Sector and Housing Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2.7 Local Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 2.8 Environmental Impacts of SSEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2.8.1 HBEs and the Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2.8.2 Local Government and the Environmental Standards of SSEs . . . . . . . . . . . . . . . . . . . . . . . . . 27 2.8.3 The Environment and SSE Recycling Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 2.8.4 Environmental Problems in Peri-Urban Zones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2.8.5 The Safety of the Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 2.9 The SSE Paradox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2.10 Summary of Key Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 3.0 Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 3.1 The Participation of Entrepreneurs and Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 3.2 The Participation of Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 3.3 The Importance of Starting Small . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 3.4 Improvisation, Innovation and Imitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 3.4.1 Improvisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 3.4.2 Imitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.4.3 Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Chapter One Introduction Chapter Two Working in the City Chapter Three Facilitating Innovation and Opportunity — The Environment and Entrepreneurship in Cities
- 5. TABLE OF CONTENTS(cont’d) 3.5 Promoting More Responsive Municipal Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.6 Informal Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 3.7 NGO Involvement in the SSE Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.8 Land Tenure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.9 Enterprise Incubation and Extension Programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.10 Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.11 Summary of Key Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 4.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 4.1 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 4.2 Facilitating Sustainable Home Based Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 4.3 Supporting SSE Outside the Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 4.4 Selective Greening in Support of SSE Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 4.5 An Ideal Community Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 4.6 Summary of Key Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 5.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 5.1 Occupational Health and Safety Standards for SSEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 5.2 From Waste to Green Pastures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 5.3 Clustering and Common Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 5.4 A New Look at Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 5.5 Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 5.6 Appropriate Environmental Management Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 5.7 Eco-Industrial Parks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 5.8 New Environmental Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 5.9 Summary of Key Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 6.0 In Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Bibliography Chapter Four Redesigning Communities Chapter Five Improving the Environmental Performance of SSEs Chapter Six Conclusion
- 6. Acronyms ADB Asian DevelopmentBank CIDA Canadian International Development Agency CMCH Centre for Minimum Cost Housing, McGill University EA Environmental assessment EIP Eco-industrial park GNP Gross National Product HBE Home based enterprise HUDCO Housing and Urban Development Corporation IADB Inter-American Development Bank ILO International Labour Organization LME Large and medium size enterprise NGO Non-governmental organization NMV Non-motorized vehicle OHS Occupational Health and Safety PRA Participatory Rural Appraisal SSE Small scale enterprise UNDP United Nations Development Programme UNEP United Nations Environment Programme UNICEF United Nations Children’s Fund UNIDO United Nations Industrial Development Organization WHO World Health Organization WISE Work Improvements in Small Enterprises
- 7. Executive Summary An importantcharacteristic of the urban environment in developing countries is the level of small scale economic activity that takes place. Small scale enterprise (SSE) is an important fact of economic and social life in these cities. SSEs operate in a variety of permanent and non-permanent settings, from the home (HBEs) to small scale factories. They are great sources of economic ingenuity, and are creating employment for a growing percentage of urban populations. The varied economic opportunities offered by the largely unregulated SSE sector are a critical weapon in the struggle against poverty, particularly for women. Another important characteristic of SSEs within the urban and peri-urban environment is their potential to contribute to poor environmental standards. It is the proverbial vicious circle, with many SSEs operating with poor technology in substandard conditions, while receiving few services from municipal governments to help counter the negative environmental impacts of their productive activities. As a result, SSE environmental standards have become a source of tension between local authorities and entrepreneurs. This document looks at these two governing characteristics of economic life in cities in developing countries, making a case for the role of SSEs within urban development plans and strategies, showing both the positive and negative aspects of HBEs and SSEs, illustrating what is already being done to improve environmental standards, and explaining what more could be accomplished. Issues that are explored in some detail include spatial considerations related to HBEs and SSEs, appropriate transportation services and energy sources, occupational health and safety issues, convergence of urban and rural SSE activities, selective greening of cities to mitigate polluting elements, sector clustering to combine services, the relationship between SSEs and other types of industry, environmental management, and the role of local governments and development practitioners. This document presents its case for the role and potential of SSEs through the use of numerous examples, demonstrating what needs to be done in terms of improving the performance and standards of this sector, and what is already being done in communities around the world. The essential message is that SSEs, if properly supported, can improve the environmental and living standards of cities. These flexible and creative sources of employment are clearly meeting a need and should not be excluded from new urban planning strategies.
- 8. 1.0 Background Increasing concernis being expressed over the state of urban centres in developing countries. National and local governments, community groups and aid agencies are searching for answers to mounting problems related to the environmental and living standards of cities. Cities are in peril as a result of high levels of pollution, decaying infrastructure and transportation systems, and housing shortages. The physical environment of cities, and the economic and social opportunities offered by cities, are all being compromised. In cities of all sizes, places of work, play and socializing — and indeed places of beauty — are being negatively reshaped by urban decay. Although cities remain engines of economic growth, ingenuity and employment for an increasing percentage of the world's population, they create what are considered by many as the most harsh and brutal living conditions known to humankind. The degradation of the physical urban environment is helping to entrench long-standing economic and social inequities. A growing percentage of the burgeoning population of urban centres is poor, and it is this sector of the population, more than any other, that is carrying the burden related to the problems of urban decay. In many respects urban centres throughout the Southern hemisphere are in dire need of retooling and regeneration. This is certainly true in terms of: • how infrastructure is maintained and services de- livered; • where and how people are housed; • how buildings and neighbourhoods are designed; and, • how roads and transportation systems are planned and maintained. It is imperative that new ways are found to reinforce and reorganize responsibility and capacity to address this situation. 1.1 The Place of Small Scale Enterprise in a New Era of Urban Planning Over the last decade, a variety of new urban initiatives have been launched by international, national and community-based organizations in an effort to find ways to solve mounting urban problems. This recent activity, as well as insight provided by new theoretical approaches to urban planning and urban environmental management (UEM), are creating a much broader and more in-depth knowledge and base of expertise. This is a first step to forging new practices that are more flexible, localized, democratic, sensible and responsive to the needs of the poor, than those promoted in the past. Yet, in a context where the assumptions guiding urban planning are changing, it is important to re-examine all fabrics of the urban milieu to see where solutions to problems can be found. It is therefore appropriate to consider a more prominent role for small scale enterprise as a conduit for regenerating urban centres. Small scale enterprise (SSE), for the purpose of this document, encompasses both micro and small scale enterprise activity. The definition is broad enough to cover both productive and service-oriented enterprises of less than 50 employees, which operate in a variety of settings from the home to small factories. A large percentage of SSEs thrive in the informal sectors of urban economies. The characteristics of informal enterprises can include: operating with lower overhead costs and marginal capital investment; the absence of formal regulation and tax systems; and, possibly, a non- permanent worksite location. In addition to the informal sector, there are a significant number of SSEs operating as part of the formal economy that are registered, pay taxes, and operate from established locations. The combination of informal and formal SSEs represents the most important economic component of the urban economy. As the main entry point for entrepreneurial activity, SSEs create more employment than any other Reinventing the City: The Role of Small Scale Enterprise 1 Chapter One Introduction
- 9. sector of theurban economy. National governments and donor agencies have recognized this fact by increasing their support for small scale enterprise activity through micro finance programmes and other innovative vehicles such as incubator programmes. In addition to creating employment, the SSE sector is valued as a source of ingenuity and vitality, which in turn influences urban communities beyond the realm of economics. With the exception of housing, the ‘where’, ‘how’ and ‘why’ of SSE activity constitute the most important factors in determining how urban space and resources are used. It is therefore reasonable that the SSE sector plays a greater role in new approaches to urban planning. In the area of environmental practices, many SSEs show great resourcefulness in minimizing waste and in recycling. Small operating budgets have made it necessary for entrepreneurs to find ways to make ends meet, and this invariably means making the best use of resources and limited space. Moreover, most urban centres in the developing world have active SSE sectors that provide services in the areas of waste collection and recycling. In some cities, the informal sector outperforms municipal governments in waste collection. [Ali and Ali: 1993] Yet, not all is environmental perfection with SSEs. In fact, there are a vast array of environmental problems associated with urban SSEs. There are far too many SSEs in a variety of sectors — from tanning and electroplating to artisanal activity — that can be the source of significant negative environmental impacts on local communities. The diversity, changing nature and growing number of urban SSEs create an enormous array of environmental challenges, both in terms of understanding and choosing appropriate remedial methods. Most often SSEs operate in surroundings characterized by inadequate housing, transportation, water and sanitation infrastructure, and health facilities. Cluttered streets, alleys, commercial parks and inappropriate building space — such as individual homes — often become makeshift workplaces that can create unsafe conditions for workers, family members and the broader community. It is within the context of the precarious existence of SSEs that solutions to environmental problems must be found. Given the social and economic importance of SSEs, the emphasis must be on introducing corrective measures to reduce negative environmental impacts, and to ensure that SSEs are at the centre of strategies which address broader problems impacting on the urban environment. Urban SSEs operate in an environment that can experience rapid change through the adaptation of new ideas and technologies. This dynamic provides a great opportunity to create more sustainable patterns of economic activity that can impact upon both the entrepreneurial milieu and other aspects of urban life. Finally, it is important to stress that making a stronger link between the environment and SSE activity is not solely about environmental standards. Efforts in this area should be a part of a larger agenda to alleviate poverty, by increasing and diversifying economic opportunities, and by improving infrastructure, workplace and housing standards. It is the intention of this document to demonstrate how this is possible. 1.2 A Changing Development Context and the Rational for this Document Reinventing the City: The Role of Small Scale Enterprise is designed to outline the conditions and factors that allow small scale enterprise to play a larger role in improving the living and environmental standards of cities. The document highlights ideas, innovations and practices that are realistic from a technical, economic, political and social standpoint. A broad variety of options are presented on how to incorporate small scale enterprise into schemes to improve the physical environment of cities and eliminate related conditions contributing to poverty. An important theme of Reinventing the City is presenting solutions to the environmental problems created by SSEs. It would have been useful in developing this publication if a vast array of information and project experience had been available. This, however, was not the case. Nevertheless, an extensive effort has been made to collect and present as many key case studies as possible. This document benefits greatly from the knowledge and insight emanating from related spheres of activity, where refinements and the emergence of new approaches are creating new options for working with entrepreneurs, workers, community groups and governments. Reinventing the City: The Role of Small Scale Enterprise 2
- 10. In the economicsphere, a great deal of knowledge and experience has been accumulated in recent years on how to assist SSEs. Micro finance, the practice of providing small loans to individuals and community groups, has opened up new possibilities for assisting the poor in initiating and enhancing economic activities for their own benefit. In addition, experiences with business incubator programmes and related business services have shown how cost effective instruments can be used to create new enterprises, protect struggling ones, and introduce technological change. The renewed interest in participatory development, due largely to the emergence of Participatory Rural Appraisal (PRA), is setting new standards for development projects. This emphasis on participation, combined with more fundamental attempts to make governments more democratic, accountable and responsive, has created the possibility of tapping into previously under utilized sources of collective and individual knowledge and skills. Improvements in technology in a wide variety of areas, such as renewable energy and the transportation sector, are creating other possibilities. Yet the most important development related to technology has been the shift in thinking, from placing emphasis on the technology itself, to understanding how technologies can be more successfully integrated into the activities of family, community and the workplace. Although not traditionally focused on the SSE sector, the field of occupational health and safety (OHS) offers great insight on how changes can be made in the workplace to improve safety standards and protect the environment, while improving economic performance. Pilot activities, undertaken by organizations such as the ILO, have demonstrated an enormous potential to work with SSEs to improve OHS standards. Also, donor agencies such as CIDA are placing a greater emphasis on developing practical tools and modifying established practices for a more sustainable impact (e.g., environmental assessment to ensure that small scale development activity is properly managed from an environmental standpoint). The collective result of these experiences is that much more is known about how to work with individuals, communities, entrepreneurs and local government to facilitate change. 1.3 Regarding the Content of this Publication It is important to underline a few key points concerning this document. For reasons of expediency and focus, Reinventing the City does not examine the role played by SSEs in recycling and waste management. This subject is relatively well documented and analyzed in a number of publications [see Fernandez: 1997, Haan et al.: 1998 and Furedy: 1990b]. Although much can be learned from the experience of SSEs in this field, other topics and issues need to be addressed to provide a more comprehensive overview of the interrelationship between the urban environment and SSEs, and the possibilities to promote change. Nor will the use of command and control legislation to police the activities of SSEs be explored. Many would argue that the focus of this document should be on the applicability of environmental measures, regulations and controls. However, in the context of the largely unregulated urban economic process in which SSEs operate and flourish, it could be argued that the emphasis should be on working with the possibilities provided by this very situation. Despite a few notable exceptions, the experience to date with regulation and enforcement of SSEs has been overwhelmingly negative. Until local governments are in a position to ensure adherence to environmental standards in a judicious and effective manner, the emphasis should be on working more collaboratively, and finding other means to put pressure on SSEs to adhere to better environmental practices. 1.4 Chapter Outline In addition to introductory and concluding sections, this document is organized into four main content chapters: Chapter 2: Working in the City To better understand the SSE sector, this chapter presents information on statistics and trends regarding the place of SSEs in the urban economy. The SSE sector is examined in relation to housing and transportation practices and standards, trends, spatial arrangements, and local government resources and capacity. The chapter concludes with an examination of the environmental impact of SSEs in terms of resource utilization, and the sector's contribution to pollution, overcrowding and the faltering infrastructure of cities. Reinventing the City: The Role of Small Scale Enterprise 3
- 11. Chapter 3: FacilitatingInnovation and Opportunity — The Environment and Entrepreneurship in Cities This chapter provides an overview of the conditions and development practices which could contribute to ensuring that the ideas and suggestions presented in subsequent chapters are properly implemented. The chapter examines the inherent attributes of cities and the urban entrepreneurial milieu conducive to facilitating change, and the potential role of local government, communities and entrepreneurs. Chapter 4: Redesigning Communities This chapter explores different ideas and approaches on the spatial layout of communities, the housing and transportation sectors, in relation to the improved environmental integration of SSEs. Chapter 5: Improving the Environmental Performance of SSEs This chapter focuses on the workplace and workers, and ideas related to making urban SSE manufacturing activity cleaner and safer. Topics covered include occupational health and safety practices, energy use, sector clustering to provide common services, and industrial eco-parks. Each content chapter concludes with a summary of the key points. 1.5 Terminology Throughout this document, the terms ‘urban centre’ and ‘city’ will be used interchangeably. Other interchangeable terms will include ‘slum’, ‘informal settlement’ and ‘low income community’. Reinventing the City: The Role of Small Scale Enterprise 4
- 12. 2.0 Introduction The veryapparent pollution, squalidness, poverty and breakdown of services found in cities in developing countries can easily shape negative sentiments about what it must mean to live and work in such conditions. Cities in developing countries can be awful places because of these problems, but this does not tell the whole story. They are also highly animated, full of life and vigour. Much of the credit for this goes to the SSEs filling the streets, alleys, markets, parks and buildings. A late evening traveller to Dhaka, Lahore, or other South Asian cities, is struck by the noise and vivacity of the commercial activity emanating from the streets and other SSE workplaces. On market day in countless African cities, the limits of the transportation system and infrastructure are quickly tested as the volume of commerce swells. The resonating character of these cities is not the creation of city managers and planners. As will be demonstrated in this chapter, established planning grids and neighbourhood designs have largely been ignored by people to permit a more interactive and practical relationship between the home, common space and entrepreneurial pursuits. As such, SSEs tell us a great deal about how urban centres could be designed differently. Clearly, small scale entrepreneurial activity is not the only factor that comes to define what cities are, but for a large percentage of the urban population it is a major element. This chapter attempts to provide insight into the environmental, cultural, social, political and economic dynamics shaping the character and extent of small enterprise in cities. To help set the stage, the chapter begins with a brief examination of some findings and reflections related to the economic importance of urban SSEs. 2.1 The ‘Survival Economics’ of Urban SSEs Below are a series of summary statistics and observations regarding urban SSEs. They provide an interesting, if occasionally contradictory, portrayal of the sector. Certain of the points raised here will be elaborated upon in subsequent sections of this document: • Most enterprises categorized as urban SSEs are very small. In a study of African SSEs, the majority were classified as one-person operations. [Mead and Liedholm: 1998, 62] Yet some SSEs can employ large numbers of workers. Informal waste collection and recycling operations are good examples of this. • A large percentage of SSEs are home based enterprises. • The percentage of the urban population finding work in the SSE sector is growing. The Asian Development Bank (ADB) reports that three-quarters of all new jobs in South Asian mega-cites are created by the informal sector. [ADB: 1999, 38] A World Health Organization (WHO) study found that 45%–95% of the workforce in developing countries can be found in small factories and related industries. [reported in McCann: 1996] • Although the majority of urban SSEs are engaged in non-productive activity, there is a significant minority involved in productive activity best described as industrial. • "In most countries the majority of (SSEs) are owned and operated by women. Furthermore, since working proprietors are the single largest category of the labour force, the majority of workers are women." [Mead and Liedholm: 1998, 64] • Studies indicate substantial differences in economic efficiency by enterprise size. In particular, the "returns per hour of labour are significantly higher for enterprises with 2-5 workers, compared to those with one person working alone. This increase in economic efficiency continues for the next higher size group, those with 6-9 workers; thereafter, the results are more ambiguous." [Mead and Liedholm: 1998, 64] • "(SSEs) are in a constant state of flux. During any given period, new firms are being created (new starts, or enterprise births) while others are closing; at the Reinventing the City: The Role of Small Scale Enterprise 5 Chapter Two Working in the City
- 13. same time, someexisting firms are expanding and others are contracting in size. Since these individual components of change can move in opposite directions, figures on net change mask the magnitude of the churning that takes place." [Mead and Liedholm: 1998, 64] • The overall contribution of SSEs to Lao's Gross National Product (GNP) is between 6-9%. [Daniels: 1999, 55] In a nationwide survey of Kenya, urban SSEs were found to provide 50% of family income; 18% of SSEs provided all the household income. [Daniels: 1999, 59] "One-third of all working persons are employed in SSEs and the sector contributes 13% to Kenya's Gross Domestic Product." [Daniels: 1999, 63] In Guatemala, it is estimated that the urban informal economy accounts for 34% of the country's GNP. In 1960, the informal sector accounted for only 5% of Guatemala's GNP. [Villelabeitia: 2000] • A study of informal enterprises in Nigeria demonstrated that informal enterprises rarely have written down conditions of work or fixed working hours. [Faphounda: 1985, 79] Informal enterprises have variable hours of operation, usually running for about 11.5 hours every day. Only 4.4% of the enterprises operated for exactly eight hours a day, and about 7% operated for less than eight hours. Even though the enterprises had long operating hours, they usually worked for one stretch at a time, rather than in shifts. [Faphounda: 1985, 81] • Most SSEs operate at low, often obsolete levels of technology. However, even in the most advantaged enterprises, progress can be made in technological capacity. [see King: 1996 and McCormick: 1998] • In India, SSEs "produce crude, low price final products, which are sold to consumers either directly or through distribution channels. These firms are sometimes found to compete with larger firms that exist in the same industry segment, but which produce differentiated products, that incorporate special design features that make it stand out." [Vachini: 1991, 26] • Clustering, whereby a large number of enterprises from the same or related sectors locate in the same area, is an important phenomenon of the SSE sector. Clustering occurs for a number of economic reasons to allow SSEs to achieve economies of scale,and share technology and labour. Clustering can take many different forms. Clustering in Asia and Latin America can be more sophisticated than that typically found in Africa. [McCormick: 1998] For example, clusters in Latin America and Asia have been known to become important centres in the manufacturing of a wide variety of goods (i.e., from footwear to medical inputs). [McCormick: 1998, 11] While in Africa, clusters can consist of thousands of micro enterprises operating at a very basic technological level. [McCormick: 1998, 11] • There can be considerable economic interaction between SSEs and medium and large scale enterprises — e.g., SSEs are often relied on to provide small implements in the production of larger goods. • Cultural, social and family considerations can be as important as economic factors in determining the location, size and number of SSEs working on or in a particular street or dwelling. Co-operation and mutual support can be found within enterprises that normally one would perceive to be in competition with one another. [see Gough: 2000 and Benjamin: 1991] The contribution of SSEs to the urban economy is significant and growing. Although statistics vary, the tendency is towards estimating a high percentage of the population finding work in SSEs — somewhere between one-half to three-quarters of the urban workforce. The major problem in undertaking statistical work on SSEs is studying enterprises that mostly operate in a clandestine manner outside the formal economy. Yet, the most important point to retain regarding urban SSEs is their role in combating poverty. By supplementing incomes and creating singular employment opportunities, SSEs are in many ways a last line of defence against certain poverty, especially for women. The availability of flexible Reinventing the City: The Role of Small Scale Enterprise 6
- 14. SSE opportunities isof tantamount importance for women who must also contend with demanding domestic responsibilities that tend to limit economic options. 2.2 The Home as a Workplace Home based enterprises (HBEs) are the best example of the economic convenience afforded by the SSE sector. The concept of combining living and working space has been around a long time, including in Europe where it was very common up until the Renaissance period. This arrangement served more than economic purposes, contributing greatly to medieval society by making the "medieval family a very open unit." [Schoenauer: 1992, 228] Lewis Mumford, one of the earliest critics of modern urban life, described the European medieval home as follows: The medieval family included, as part of the normal household, not only relatives by blood but a group of industrial workers as well as domestics whose relation was that of secondary members of the family. This held for all classes ... for young men from the upper classes who got their knowledge of the world by serving as waiting men in a noble family; what they observed and overheard at meal-time was part of their education. Apprentices, and sometimes journeymen, lived as members of the master craftsman's family. If marriage was perhaps deferred longer for men than today, the advantages of home life were not entirely lacking even for the bachelor. [Mumford: 1961, 281] The separation of the household from the workplace had a profound and lasting impact on the future evolution of cities in European countries. In developing countries, the practice of integrating home and entrepreneurial pursuits has been kept alive for both economic and social reasons. It particularly thrives in places where strict rules about land use are not enforced. [Medina: 1997] The home doubling as a workplace reduces costs. It affords parents, mostly mothers, the opportunity to stay close to and care for their children. Gough notes that "in almost all low income settlements in (developing) countries, people in HBEs can be seen cooking, sewing, selling drinks and food, keeping animals, mending and making shoes, manufacturing various goods, cutting hair, giving injections, and renting rooms." [Gough: 1996, 95] In the rapidly growing low income settlement of Madina Ghana, located on the outskirts of Accra, two-thirds of all dwellings have at least one HBE. [Gough: 2000] A study of informal settlements in Port- au-Prince, Haiti, determined that home based entrepreneurship was so far-reaching that housing units were treated as places of production. [Fass: 1977 quoted in Tripple: 1993] In developing countries, HBEs can be found in middle-class dwellings, especially in countries experiencing an economic downturn. [Olufemi: 2000] A study of HBEs in a‘Bustee’ (Bengali for slum) community in Calcutta describes the character of HBEs and how they come to influence a neighbourhood's character: • In the bustee, almost all of the homes located near the main or secondary roads have some kind of small business activity within their domestic space. • Some households with interior locations are involved in (productive) oriented activities like raakhi making, bidi making, tailoring, agrabatti rolling, etc.. These activities do not require formal shops for their distribution. • A number of shops (home based) selling the same product can be sustained by high demand. Only special services shops, such as metal repairs, can be located away from main roads. • Given the use of domestic space for HBE activity, common spaces are shared by families for cooking, washing and drying clothes, relaxing, playing and sometimes eating. Thus a very close interrelationship develops between houses and their spatial surroundings. Spaces for domestic and income generating activities exist and interact to the mutual benefit of the bustee dwellers. • Bustee dwellers sacrifice ‘living’ quality to a great extent to accommodate their income earning activity, since this is important to their survival. Prime space is given over for income generation. The lack of proper space forces them to adjust to the existing conditions as best as possible, often involving sacrifices in other daily living activities. Reinventing the City: The Role of Small Scale Enterprise 7
- 15. [Ghosh: 1994, 77-79] Similarto Ghosh's findings, a study in Aba, Nigeria, determined that "usable space takes precedent over aesthetics and permanence, and both housing and environmental quality in terms of construction standards are of little significance, compared with employment." [Nwankama: 1993] The drawing in Figure 2.2.1 is an overview of the Gorcha bustee community in Calcutta, India, which is the focus of Ghosh's study. Figures 2.2.2 and 2.2.3 are ‘section through’ drawings of two home based entrepreneurs in Gorcha that established enterprises in extensions of their homes. Box 2.1 is an extract from a study of HBEs of a very different kind, found in the Viswas Nager settlement of East Delhi. Benjamin uses the term ‘neighbourhood-as- factory’ to describe the entrepreneurial activity of HBEs there. [Benjamin: 1991] The experience of Viswas Nager is significant because it broadens significantly the perception of what constitutes HBEs, and the role they can play in building communities. InViswar Nager, a strong, well organized SSE sector, led by HBEs, worked with local officials to improve conditions in terms of infrastructure Reinventing the City: The Role of Small Scale Enterprise 8 Box 2.1 The Home Based Factories of East Delhi In the East Delhi colony ofViswas Nager, the outward image is of a typical Delhi settlement in various stages of construction — endlessly reproducing themselves through additions or subdivisions, and hectic movement of people and vehicles along the inner streets. But these impressions are misleading. Inside the ‘houses’, generally in basements and on ground floors, are factories reminiscent of the Industrial Revolution. Machines whir in the dim and often dusty light, their operators supervised carefully by foremen.The cycle rickshaws that must be dodged in the streets are not only transporting people, but also raw copper stock and semi-finished copper wire among hundreds of small (home based) factories. The production system of Viswas Nager has developed into a neighbourhood-as-factory — a network of small firms located in the same area, which both compete and co-operate with each other. There is the pervasive smell of new brickwork and the noise of machinery in front room shops. Their productivity stimulates the markets and creates job, which leads to even greater production levels and continues a cycle of successful economic growth. To observers, its seems impossible that sophisticated manufacturing takes place in such a rudimentary environment. As of 1991, up to 80% of the city's manufacturing was taking place in such neighbourhood factories. Industries support each other in East Delhi. Copper wire and cable manufacturing industries depend on secondary manufacturing such as plastic recycling and cycle rickshaw fabrication. Although all modes of transportation are used, the cycle-rickshaw is the key. Typically, cycle-rickshaws are hailed from the street as needed, but some entrepreneurs maintain their own fleet. The differentiated transport system is well suited to the diverse conditions of the roads within the settlement. While heavy vehicles are efficient for transporting goods on high quality roads, only cycle-rickshaws and animal driven carts are capable of traversing the narrow, unpaved and flood prone roads located in sections of the settlement. By 1991, the colony had a workforce, political strength, a diversified property market and a number of local money lending associations. Viswas Nager is an example of difficult but successful co-operation between common people and institutions. The efficiency of the colony's development by increments is a lesson for those who believe that massive public or private interventions in land and industrial development are necessary for economic progress. [Benjamin: 1991,4-100]
- 16. Reinventing the City:The Role of Small Scale Enterprise 9 Figures 2.2.1. 2.2.2, 2.2.3 Overview of Gorcha Bustee in Calcutta India [Ghosh, 94] Section through of two home-based enterprises in Gorcha Bustee [Ghosh, 94]
- 17. and sanitation. 2.3 CommunitySpace as a Workplace The first layer of outdoor SSEs are HBEs adjacent to homes such as in figure 2.3.1 and 2.3.2. Nwankama notes that in communities such as Aba, Nigeria, where HBEs flourish, the physical distinction between the interior and exterior of the home is artificial, influenced primarily by "climate, the scale and organization of the outdoor space, and the nature of work and size of the enterprise." [Nwankama: 1993, 128] HBEs attached to and surrounding dwellings are part of a larger network of SSEs, operating in a diverse range of Reinventing the City: The Role of Small Scale Enterprise 10 Figure 2.2.4 Section through of another home-based enterprise and location in Gorcha Bustee. [Ghosh, 94]
- 18. outdoor locations andconditions. Some outdoor SSEs operate with permits from established buildings and locations in the same way small enterprises operate in Canada.Yet most do not. Although mostly service oriented, there can be very large, outdoor SSEs involved in heavy industrial activity. [Pallen: 1997b] Depending on the degree of by-law enforcement,any open or free space is a potential workplace — i.e., alleys, streets, sidewalks, railway lines, parks, intersections, markets, industrial parks and rooftops. A study by McGill University’s Centre for Minimum Cost Housing (CMCH) of two slums in Indore, India, documented the diverse and complex variations of spatial requirements needed by an equally diverse assortment of outdoor work activities: "They varied from as small as 2 square metres, in the case of paper bracelets, to as much as 36 square metres for the repair and refurbishment of wooden crates. Some of the activities needed shelter, others did not. Most required not only a work space, but also a space for storing either raw materials or finished products, or both." [Rybczynski et al.: 1984, 21] Reinventing the City: The Role of Small Scale Enterprise 11 Figure 2.3.1 In Aba Nigeria, carpenter and his apprentice use space at side of house as a work space. The workplace is highly visible to passerbys. [Nwankama, 1993]
- 19. Reinventing the City:The Role of Small Scale Enterprise 12 Figure 2.3.2 A beedi seller (Indian cigarette) sets up a stall along side a house in Gorcha Bustee in Calcutta, India. [Ghosh, 94]
- 20. Reinventing the City:The Role of Small Scale Enterprise 13 Figure 2.3.3 In Aba Nigeria, an overhead view of two small shops, a breakfast joint and used clothes store alongside a work place. The work place is used for bicycle repairs. [Nwankama, 93]
- 21. There is alsothe phenomena of mobility: "There are mobile shops — carts and moveable kiosks — that are operated by hawkers and peddlers. The distinction between mobile and fixed shops can be blurred, since frequently the first stage of establishing a permanent shop is simply to park a pushcart in one location, and eventually to upgrade it into a semi-permanent structure." [Rybczynski et al.: 1984, 33] Figures 2.3.3, 2.3.4, 2.3.5 and 2.3.6 are drawings from Aba, Nigeria, demonstrating the variety of uses and shapes of outdoor SSE space in that city. To the outsider, the locations occupied by outdoor SSEs can appear overcrowded and chaotic. The impression is that nothing has been planned. However, this is most often far from the truth. In fact, there is usually an innate logic behind where and how enterprises are located. Post describes the situation of SSEs operating in the town centre of Kassala, Sudan, as follows: An intricate network of interdependency relations has developed, requiring that members of the same professional group work at the same place (for example, butchers, leather manufacturers, gold and silversmiths, etc.). Tailors use the arcades in front of fabric shops; retail grain sellers working the street are near to their wholesale colleagues (where supply trucks unload); soft drink and fruit juice sellers occupy sites near the bus terminal; and craftsman are ideally situated for direct contact with the consumer ... Street traders in Reinventing the City: The Role of Small Scale Enterprise 14 Figure 2.3.4 Space between a road and railroad is used for block-making in Aba Nigeria. [Nwankama, 93]
- 22. particular rely onlarge streams of passers-by and depend on small and frequent orders with suppliers. The importance of mutual proximity has even increased over the last few years due to the chronic shortage of all sorts of commodities, making personal contacts and swift communication vital in order to secure essential supplies. [Post: 1996, 37] The type of entrepreneurial networks and clusters described by Post can be found in various shapes throughout Africa, Asia and Latin America. From neighbourhood to neighbourhood and street to street, SSEs respond to the needs of local residents. At the same time, cultural and family traditions can also intertwine with economic factors to influence the shape and character of streets and neighbourhoods [see Bishop and Kellet: 2000]. Reinventing the City: The Role of Small Scale Enterprise 15 Figure 2.3.5 A wider street in Aba Nigeria is used for metal work and for auto repairs. [Nwankama, 93]
- 23. Reinventing the City:The Role of Small Scale Enterprise 16 Figure 2.3.6 Small shops are built behind the railroad at a street intersection where tires, candies, gin and soft drinks are sold. Places are also available for hair braiding and a food vendor. [Nwankama, 93]
- 24. Reinventing the City:The Role of Small Scale Enterprise 17 It is also not uncommon to find a number of women selling the same goods and services in streets, shops or homes, in close proximity to one another. This type of pattern may have more to do with mutual co-operation and self-support, as opposed to the, by and large, economic motivation behind clustering. Moreover, with the absence of such public buildings as community centres, and in some cases schools and religious buildings, the premises of SSEs such as tea houses can serve a social function, by providing people with public meeting spaces. [Rybczynski et al.: 1984, 33] Figure 2.3.7 Scene of the daily market in the main passageway of the Gorcha Bustee in Calcutta, India. [Ghosh, 94]
- 25. The patterns andarrangements of outdoor SSEs have developed slowly over time and Post appeals to urban planners to be more appreciative of these ‘self chosen locations’: "Although chosen under sometimes severe economic, cultural and physical constraints, they nevertheless demonstrate the rational of differing settlement choices. Knowledge of the spatial logic of survival is essential to the formulation and implementation of any proactive planning on behalf of small enterprises." [Post: 1996, 39] 2.4 Transportation and Urban SSEs Although most entrepreneurs in the SSE sector would prefer to own a motorized vehicle, the reality is that very few do, or ever will. A variety of transportation modes are available to SSEs, yet most rely on non-motorized vehicles (NMVs). NMVs, such as those found in Figures 2.4.1 and 2.4.2, play an important part in the economic world of SSEs and, indeed, in the overall economies of developing countries. In Viswas Nager [see Box 2:1], a survey of Reinventing the City: The Role of Small Scale Enterprise 18 Figure 2.4.1 NMVs in Asia. [World Bank, 1995, 9]
- 26. entrepreneurs revealed thata major reason for their economic success was the availability and suitability of low cost cycle-rickshaw transportation. [Benjamin: 1991, 41] As the World Bank points out, NMVs such as bicycles, cycle-rickshaws, animal carts, push and pull carts, are "non polluting, low cost mobility powered by renewable energy sources that are well suited for short trips in most cities." [World Bank: 1995, xii] In some cities and communities, NMVs can provide the most mobility. In Yogyakarta, Indonesia, almost 10% of the population live along the Code River, where access between houses or access outside the settlement to surrounding communities is possible only by internal footpaths and narrow streets. In other words, there is no access into and throughYogyakrta by car. [Nareswari: 2000, 3] Reinventing the City: The Role of Small Scale Enterprise 19 Figure 2.4.2 NMVs in Asia. [World Bank, 1995, 8]
- 27. SSEs, like allenterprises, rely on existing transportation systems to move goods, provide services, and facilitate other economic activity. Yet today, neglected trans- portation networks are being refitted to facilitate the movement of commuters in automobiles, thereby adding to the problems of congestion and pollution. At the same time, more realistic and pragmatic approaches to urban transportation, which consider the needs of all users, are ignored. [see UNDP: 1992] The World Bank [1995, 1] undertook a study of ten major Asian cities and identified the following trends that impact negatively on the use of NMVs: 1. Increased motorization (including the increased use of motorcycles) and a consequent reduction in the street space available for safe NMV use. 2. Exclusion of NMV needs in urban transport planning and investment programmes, resulting in inadequate facilities for NMVs. 3. General trend toward modernization of Asia cities, which promotes attitudes that NMVs are backward. 4. Tendency to believe that NMVs are the cause of urban traffic congestion. 5. Increased trip lengths caused by changes in metropolitan spatial structure. The World Bank adds: In many Asian cities there is an apparent bias against NMVs. Hanoi, Dhaka and Metro Manila are a few of the cities that have as official policy the reduction or elimination of NMVs because of perceived impact on congestion and safety, as well as the ‘degrading nature of the work required of the operator’ ... the consequence of anti-NMV biases is unbalanced transport planning, which results in accommodating the needs of motorists at the expense of NMV operators and users. Such unbalanced planning can actually lead to a deterioration of traffic conditions for both motorized vehicles and NMVs. [World Bank: 1995, 59-60] In Jakarta during the 1980s, roughly 20,000 cycle-rickshaws were tossed into Jakarta Bay and another 30,000 confiscated by city officials in a effort to eliminate ‘backward technology’. [Gardner: 1998, 16] In some countries, such as Vietnam, municipal policies have actually contributed to a reduction in bicycle use. [Gardner: 1998, 16] Recently, the municipality of Rawalpindi, one of Pakistan's largest cities, banned NMVs in the old town centre, where the streets are narrow and well suited to such vehicles. Such attempts to reduce NMV use seem more preposterous when one considers that the overall use of NMVs in Asia is actually growing. [World Bank: 1995] Not only are NMVs more economical, they are also more practical in most circumstances. Bicycles trips, for example, compare favourably with cars for urban trips of about 2 kilometres. "In Beijing, bicycles are faster than the bus or subway for trips up to 6 kilometres and remain competitive with public transportation for journeys of up to 10 kilometres." [Gardner: 1998, 18] Subsequent chapters will discuss the efforts of certain municipalities to capitalize on these inherent advantages to improve and increase the use of NMVs. Another aspect of NMVs that is not well known is the significant amount of small scale entrepreneurial activity that exists in support of NMVs. NMVs are "labour intensive modes of transport that rely extensively on the use of local technologies and skills." [World Bank: 1995, xii] The World Bank describes the importance of the NMV sector in Asia urban economies, as follows: The cycle-rickshaw industry in Dhaka — including drivers, repair persons, owners, mechanics in assembly shops, and retailers in components shops — directly provide 23 percent of the city's employment. Similarly, approximately 20 percent of the jobs in Kanpur, India are in the NMV sector, which includes all employment related to bicycles, rickshaws, animal carts and handcrafts. To the extent that motorize vehicles replace NMVs in these cities local economies will drastically change with consequent dislocation effects. Nevertheless, the inventory of Asian cities conducted for this recent study found that local governments often underestimate the economic impact of the NMV sector. [World Bank: 1995, 57] NMVs would seem to be as natural an ally as local planners could hope to have in creating employment for vulnerable groups, providing affordable and accessible Reinventing the City: The Role of Small Scale Enterprise 20
- 28. Reinventing the City:The Role of Small Scale Enterprise 21 ... Auto rickshaws number over 3 million, and are among the largest contributors to poor quality urban air. They provide passenger as well as goods transportation and account for a large percentage of the traffic on roadways. Many of these vehicles are up to 30 years old and still use leaded gasoline due to the absence of strict emission regulations and the owners limited finances. The majority of the vehicles are poorly maintained and do not employ exhaust treatment devises. Also, used oils are often added to agricultural producers while urban dwellers are thought to engage in industry and services is increasingly misleading." [Tacoli: 1998a, 3] She goes on to add: The growing evidence of the scale of and nature of urban agriculture and of rural non agricultural enterprises and employment suggests that these distinctions are over simplified descriptions of both rural and urban livelihoods. The urbanization of rural economies and employment structures is also often transportation, and in reducing pollution and the overcrowding of cities. The relatively soft clanking of bicycles, trailers and carts would seem to be a perfect antidote to overheated and noisy cities. Two stroke engine auto-rickshaws, scooters and motor cycles are also very popular in Asia, and probably create a considerable amount of employment in the SSE sector through repairs and other services. Yet unlike NMVs, auto- rickshaws and other small scale motorized vehicles are notorious polluters. The EnvironmentalTechnology Centre of Environment Canada describes the state of auto- rickshaws in Asia as follows: the gasoline at higher than the manufacturers’ recommendation. The result is higher exhaust emission rates. [Environment Canada: 1997, 3] 2.5 The Blurring Distinction Between Urban and Rural Entrepreneurship Small scale entrepreneurial activity is a key dynamic in one of the most significant changes taking place in developing countries — the eroding distinction between urban and rural life. AsTacoli points out, the assumption of a sectoral divide, whereby "rural populations are seen primarily as The Ferozepur Road in Pakistan. Redefining rural work.
- 29. most evident inthe areas immediately around or well connected to the urban areas. [Tacoli: 1998a, 3] This new reality is best observed in the growing peri- urban zones surrounding urban centres. In city outskirts, there can exist a conglomeration of entrepreneurial activity encompassing industry, agriculture and service activity. Increasingly, rural and peri-urban entrepreneurs are operating closer to urban centres to have better access to clients and reduce transportation costs. [Werna: 1997, 392] In Pakistan, the 50 kilometre long Ferozepur Road that joins Pakistan's second largest city Lahore with the ancient city of Kashur is a case in point. From Lahore, on both sides of the Ferozepur Road, entrepreneurial activity dominated by the SSE sector stretches for well over 15 kilometres. Agricultural activity is still very apparent from the road. [Pallen: 1999] It is not unthinkable that one day entrepreneurial activity along the Ferozepur Road will extend from Lahore to Kasur. In rural Bangladesh, agricultural revenue remains the main source of income. However, the percentage coming from non-farming activity is increasing dramatically. It has been estimated that by 2005, over 62% of the rural population of Bangladesh will find work in non-farming activities. [World Bank: 1997, 18] Moreover, increasingly the ranks of the peri-urban work force is made up of rural workers commuting to peri-urban areas on a daily basis. [World Bank: 1997, 18] In strictly rural areas, there are significant changes taking place in local economies: Manufacturing in permanent establishments (manufacturing outside the household, often with the help of hired workers), excluding handlooms, is dominated by traditional food processing, textiles and basic metals, accounting for 85 percent of employment and 78 percent of value added ... The sector has, nonetheless diversified considerably over the 1980s. The list of the top 15 industries by employment has changed considerably towards a clear urban and peri-urban tilt, both with regard to market orientation as well as enterprise location, and non traditional small industries have experienced rapid growth. [World Bank: 1997, 56] Similarly in cities, the practice of urban agriculture, defined as "the production of food and non-food through cultivation of plants, tree crops, aquaculture, and animal husbandry, within urban and peri-urban areas", is on the rise. [Lindayati: 1996, 3] Urban agriculture is undertaken to generate income and food for personal consumption. Backyards, front yards, planters, rooftops, abandoned buildings, community lands, roadsides and other open spaces are all potential spots for urban agriculture. In the 1980s, 60% of Greater Bangkok was used for urban agriculture. [Mougeot: 1993] As a general rule, urban agriculture finds creative uses for unserviceable pieces of land, space and water. [Mougeot: 1993] Urban agriculture is drawing the attention of international organizations, such as the International Development Research Centre (IDRC) of Canada, who are trying to promote and improve upon present urban agricultural practices. Eventually, changing urban and rural circumstances are going to force development practitioners to rethink long- standing approaches to development and, in particular, the centre piece of development activity, employment creation. New ways will have to be found to better integrate industrial and agricultural activity. 2.6 The SSE Sector and Housing Standards A housing crisis exists in cities throughout the developing world, in terms of both availability and quality, and attempts to provide basic shelter for the poor have produced mixed results. One problem identified by McGill University’s CMCH, relating to SSEs, is that planners and government officials have never understood that there is "nothing basic about basic housing." [Rybczynski et al.: 1984, 1] In the past, the decision making process in housing construction has been too heavily in favour of finding economic efficiencies in the site layout through optimizing plot ratios and widths and construction material. This approach leaves little room to consider issues of culture, family complexities and home based entrepreneurship. The solution, according to the CMCH, is a new set of settlement standards. "These standards should seek to accommodate, rather than to reorganize. They should reflect the (sometimes harsh) reality of the urban poor, and they should respond to their special needs, not to an idealized set of criteria." [Rybczynski et al.: 1984, 1] Reinventing the City: The Role of Small Scale Enterprise 22
- 30. The system ofhousing championed by the CMCH is based on housing patterns found in informal settlements, where houses are routinely built or reconfigured according to family size, cultural values and the need to accommodate home based work. As Rybcznski points out, rather than viewing informal settlements as a problem, more attention must be payed to understanding their good qualities in terms of how they respond to the needs of people: Informal Housing .... represents a solution rather than a problem. It is moreover, a solution that appears to deny conventional planning orthodoxy. The priorities of the slum dweller are frequently not those of the municipal authorities. Space takes precedence over permanence. A porch may be built before a bathroom; a workplace may be more important than a private bedroom. The apparent inversion of values is especially evident in the public spaces. Whereas planned sites and services projects usually incorporate rudimentary, minimal circulation spaces, the public areas or slums are characterized by richness and diversity. [Rybcznski et al.: 1984, 1] Similar to the small enterprise sector that supports NMVs, networks of informal builders and renovators serve the informal housing market. Informal builders are highly responsive to the building needs of the poor, and as a result represent a very large share of the new housing built in developing countries in terms of numbers and value. [ILO: 1995] Although SSE services in the housing sector may be more responsive, it is not clear what quality of services are being provided. Carr-Harris, for example, believes there are major issues that need to be addressed in terms of health and safety standards, especially related to building materials: As poor people generally build their own homes without any government subsidies, they are (often) forced to use expensive and hazardous materials. During visits to four or five squatter areas in Delhi, it was noted that asbestos was a material commonly used for roofing, when it is known to have a carcinogenic effect. Several homes have brick walls with black polythene that is believed to be associated with the high incidence of coughs, colds, pneumonia and tuberculosis as polythene forms are inadequate cover against the cold and damp. Yet other homes had tin roofs which are inappropriate for indoor cooking. These findings have been corroborated by other studies of Delhi's urban poor. [Carr-Harris: 30] 2.7 Local Government This report cites a number of examples of national and local governments attempting to understand and improve the circumstances under which SSEs operate. However, normally the relationship between SSEs and government authorities is not healthy. SSEs face the same challenges as everyone in terms of local governments not delivering badly needed services. As a result, there is a general indifference towards governments and what they have to offer, which manifests itself in a number of ways. In Pakistan, for example, government officials claim that in a country of 150 million people, only 1.2 million pay taxes. [Bearak: 2000] Also, SSEs must often operate under inappropriate regulations and by-laws that are administered and enforced in an uneven manner. Local authorities, who are unsure of how to deal with what appears to be chaos, disorder and defiance by SSEs, can end up taking steps that lead to unfortunate events, such as what occurred in Mexico City in 1995. In that case, police and hundreds of informal street vendors clashed violently after a legal order was issued banning the vendors from the city centre. The conflict arose, despite years of research and discussion, between the vendors and authorities regarding alternative arrangements. [Harrison and Mcvey: 1997] This type of incident has been re-enacted in countless other locations in Latin America, Africa and Asia. Reinventing the City: The Role of Small Scale Enterprise 23
- 31. SSEs are reluctantto pay taxes because local governments do not provide SSEs with infrastructure or services. Moreover, rarely will small scale entrepreneurs take the time to register their enterprises. But even if an entrepreneur wanted to be formally recognized, there is usually little to be gained, except possibly a lot of red tape. Box 2.2 summarizes the famous study by Hernando de Soto on the obstacles faced by informal enterprises wanting to be legally registered as a small industry. 2.8 Environmental Impacts of SSEs There is no denying that unwanted environmental impacts are occurring as a result of urban SSE activity. In some cases, the consequences can be quite significant in local communities. The main negative environmental impacts of urban SSEs are seen as follows: 1. Contribution to the congestion and overcrowding of cities. The manner in which SSEs occupy public spaces can be disruptive. Similarly, with shelter functioning as much as production units as homes, there are conflicts and undesirable compromises about how space is used. 2. Poor occupational health and safety (OHS) standards put the health and safety of workers, entrepreneurs, family members and the community at risk. 3. The inefficient use of resources, resulting in pollution and the absence of pollution mitigating technologies. 4. Indiscriminate use of hazardous substances, such as chemicals, dyes and disinfectants, in a wide range of unregulated industries. 5. A wide variety of SSE activities for which little is understood about their environmental impacts. 6. In peri-urban areas, expanding small scale industrial activity is absorbing farmland. Activities such as brickmaking and small scale mining are playing havoc with local ecosystems. SSEs may not be large in size but they are numerous, and given they often locate close to or within communities, there is great potential to do harm, especially to the poor: Pollution affects the poor more than the better off as Reinventing the City: The Role of Small Scale Enterprise 24 Box 2.2 The Challenge in Becoming Legitimate The Instituto Libertad y Democracia (ILD) undertook a simulation to measure the costs of access to industry. To do this, ILD rented the premises of an established factory, installed sewing machines, knitting machines and other implements, and recruited four university students to undertake the various bureaucratic procedures, under supervision of a lawyer experienced in administrative law. In addition to being very widespread in Peru and thus culturally significant, the activity chosen for the simulation was highly representative of the obstacles faced by small scale entrepreneurs. It required approximately 60% of the bureaucratic procedures common to all individual activities, and 90% of those required of non-incorporated individuals. The team also decided to handle all the necessary red tape without go-betweens — as a person of humble origins would do — and to pay bribes only when, despite fulfilling all the necessary legal requirements, it was the only way to complete the procedure and continue with the experiment. The results showed that a person of modest means must spend 289 days on bureaucratic procedures to fulfill the 11 requirements for setting up a small industry. The cost to establish a formal small industry represented the cost of 32 times the monthly minimum wage at the time. [De Soto: 1989]
- 32. most (SSEs) (pollutingor otherwise) are located in low income areas ... high levels of air pollution associated with small acid and chemical processing units in North- east Calcutta were largely ignored by the government of West Bengal despite protests by the low income residents. The fact is that most direct victims of pollution associated with small units are poor or from low income groups. Their plight attracts little attention as they have neither the resources nor the time to publicize the problem. [Dasgupta: 1997, 291] In a study of SSEs in Asia, Kent [1991] concluded that manufacturing SSEs pollute more on a per unit basis than larger operations. In India alone, small scale industry is suspected of contributing 60% to 65% of total industrial pollution. [MSG Environmental Services: 1999, 3] Box 2.3 outlines a number of the SSEs identified in a UNDP study in Lima (Peru), Harare (Zimbabwe), Bombay (India) and Leon (India), and the hazardous materials they employ in the production process. CIDA-sponsored studies in India [MSG Environmental Services: 1999] and Bangladesh [Child: 1998] support the contention that there are a variety of SSEs having significant negative environmental impacts. The Indian study identified, among others, the following SSEs and their main environmental impacts: Water-related environmental impacts: Starch production, rice mills, coffee, food processing, agro- residue, paper mills, textile dyeing and printing, tanneries, Reinventing the City: The Role of Small Scale Enterprise 25 Box 2.3 Pollutants and Hazardous Residues from Small Scale Industries in Developing Countries INDUSTRY PROCESS HAZARDOUS RESIDUES Bricks Chronium, fluoride, sulphur, dioxide Textile dyeing & finishing Cyanide, dyes, oils, resins, sodium hypochlorite, caustic soda, sodium carbonate polyphosphates Canning Alkalis, bleach, solvents, wax Glass and ceramics Arsenic, barium, manganese, selenium Dry cleaning Solvents, bleach Dye formulations Tin, zinc Metal mechanics & metal finishing Caustic soda, sulphuric acid, iron oxide, zinc, solvents Metal plating Polyphosphates, cyanide, caustic soda, chromium, zinc, carbonates, detergents Automotive services & machine shops Burnt oil, oil adsorbents, solvents Pickling Acid, metal, salts Battery recovery Lead, cadmium, chromium, copper, nickel, acids, mercury, methanol Paper recycling Methanol, mercury, titanium, zinc, wax pesticide formulations, zinc, copper, fluoride, organic phosphorus, phenol Tanning Chronium, arsenic, sulphates bicarbonates, formaldehyde Photography Cyanide, silver, phenols, mercury, alkalis
- 33. chemicals (including drugsand pharmaceuticals) and electroplating Energy and air pollution-related environmental impacts: Bakeries, clay bricks, ceramics, glass, foundry, steel re-rolling mills and refractories Workplace health and safety problems: Majority of SSEs, especially chemicals, clay bricks, ceramics, glass, foundry and plastics [MSG Environmental Services: 1999, 4] Small scale brickmaking has an notorious reputation for being highly polluting. Dirty fuel sources from burning tires, plastics and debris, and other forms of waste, are not uncommon [see Blackman: 2000]. Box 2.8.2 looks at the tannery industry in Kasur, Pakistan, and the attempts of one NGO to help children and their families face the often horrific consequences of working in and living close to small scale tanneries. The case study is significant for a number of reasons, but most notably for highlighting the work of one of the few NGOs working in the SSE sector on environmental issues. This topic will be elaborated upon in the next chapter. 2.8.1 HBEs and the Environment Although most HBE activity can be described as environmentally benign [see Napier et al.: 2000], there can be HBE activity that is highly problematic from an environmental and safety standpoint. In Semrang, Indonesia, there are 41 key HBE economic clusters. Of those, six clusters — food processors (tapioca crackers, fermented soybean cake makers), upholstery and metal household utensil manufacturers, brickmakers and smoked fish operations — were found to be highly Reinventing the City: The Role of Small Scale Enterprise 26 Box 2.5 Work Standards for Home Based Beedi Makers In India, there are 35 million beedi rollers and 17,000 tobacco processors making hand rolled beedi cigarettes. Although 90% of the workers are women, the trade is controlled entirely by men. In a study of beedi workers, the homes were found to be in poor condition, with barely enough space for all family members. The homes were damp, usually full of smoke, and had open drains outside full of discarded and stinking beedis. Only 50% of the houses had electricity, and the women were obliged to work using the inadequate light provided by kerosene lamps. [Bezborouah: 1985 quoted in Tipple: 1993, 531] Exposure to nicotine by beedi workers has been known to cause tobacco poisoning. Exposure to tobacco dust by beedi workers leads to irritation in the eyes, conjunctivitis, rhinitis and interference of the mucosal surface. Pregnant women have exhibited abnormal foetal growth. [Carr-Harris: 13] polluting. They impact negatively on local water supply and produce unacceptable levels of waste. [Untari et al.: 2000] Auto repair, small scale foundries and other manufacturing activity are other types of HBEs that can create environmental hazards. In addition, OHS standards are a major issue with many sectors of HBE activity [see Singh and Girish: 2000 and Panda: 2000]. For example, Box 2.5 describes the situation of home based Indian beedi (cigarette) makers. Electronics and computers, other potential hazardous sectors, are two areas of growth of HBE activity in the world. Throughout the world, large companies are contracting out to home based workers to circumvent environmental and safety standards. [Baines: 2000] Perhaps the most crucial environmental issue facing HBEs is the issue of the appropriate use of space. Although family members and neighbours are very tolerant of the noise and the spatial imposition of HBEs, at some level transforming bedrooms and living rooms into HBE operations must compromise the choices one can make, and in some cases create conflict. Clearly some forms of HBE are ill suited for the kind of space and conditions that a home offers. This is especially true for small, poorly constructed and ventilated dwellings.
- 34. Reinventing the City:The Role of Small Scale Enterprise 27 Box 2.6 Quarrying in Sao Paulo The small scale mining industry, which surrounds Sao Paulo, Brazil, has a long tradition. With the spread and development of Sao Paulo, the environmentally problematic mining activity has come under stronger scrutiny. When it came time to act, a bureaucratic nightmare was discovered. Eighteen government bodies — federal and local — had responsibilities for overseeing the different aspects of the mining activities in the metropolitan region of Sao Paulo. Economic and environment authorities responsible for small scale enterprises are separate entities, and co-operation and co- ordination between the different departments proved to be highly problematic. For example, there was a conflict between the land use plan for the city put forward by the government of the state of Sao Paulo, and a similar plan put forward by the municipal government — i.e., a mining site was legal in one plan, but illegal in the other. Furthermore, the environmental assessment code designed to cover small scale mining is the same as used to measure the environmental impact of large scale dams and mining productions. [Werna: 1997, 391-393] The most contentious issue with home based work is that it is carried out privately and escapes closer scrutiny. The field of research in home based entrepreneurship is growing. Hopefully this will lead to new insights into understanding and mitigating HBE environmental problems. 2.8.2 Local Government and the Environmental Standards of SSEs At the local level, there can be a complete absence of policy, legislation, regulation and administrative machinery regarding the environmental standards of SSEs. Increasingly, the lack of appropriate environmental management capacity is becoming a source of conflict between local governments and SSEs. Unable to respond to challenging situations, the tendency is for local governments to react in an impulsive fashion. The examples of Sao Paulo [Box 2.6] and Delhi [Box 2.7], although extreme, are indicative of two different areas where conflicts are arising more frequently. In the Indian example, the government decision to close down polluting SSEs ended up having more negative impacts than could have been foreseen. In 2000, a similar crackdown on SSEs led to what was described as the most violent protest in India in recent times. [Statesman New Service: 2000] Sections of Delhi were closed down as the protest by workers and entrepreneurs turned into scattered rioting. Ingenuity and creativity are required to help municipal authorities develop the skills and resources necessary to help SSEs master the environmental effects
- 35. Reinventing the City:The Role of Small Scale Enterprise 28 Box. 2.7 Local Indian Government and Polluting SSEs In Delhi in 1996, small scale industries, employing on average 20 people, were hit by a series of court orders requiring them to take measures to reduce pollution. The results: 1,328 industries were closed down and ordered to move out of Delhi; 90,000 units were notified for relocation; and, factories in 28 industrial estates were ordered to participate in setting up central effluent treatment plants (CETP). The Delhi Master Plan recommended the closure and relocation from Delhi of all units using or producing hazardous and noxious products. The process involved relocation and the purchase of vast tracts of land to move away from ‘non conforming areas’. In terms of gains, some reduction in local ambient pollution will have taken place with the closure of these units. Most of the units dealing in hazardous and toxic raw materials and products were located in very densely populated areas. On the negative side, estimates are that as many as 125,000 people lost work. Relocating firms had very fixed and negative views on the relations between industry and environment. None of the relocating firms expect to upgrade or change the present technology to reduce pollution. Any measures taken will be to expand production or to increase productivity of the existing technology. Some firms had to install end of pipe pollution abatement equipment. Consequently, they have come to regard environmental expenditure as unproductive and unnecessary. Not only are these measures ineffective, as they are operated only for the benefit of visitors and inspectors, the perception it is generating has serious implications for long term environmental improvements. Given the poisoned atmosphere, simple cost effective alternatives were ignored. The majority of the factory owners who have applied for land for relocation generally operate from leased premises or would like to expand their production. Relocation thus provides an opportunity to expand production and increase profit based on the same polluting technology. The outcome of the present policies are reinforcing trends that work against the development of a more environmentally effective and socially acceptable policy. Relevant conclusions are: 1. It is distracting attention from the main sources of urban pollution. 2. It is dispersing pollution instead of reducing it. 3. It is discouraging SSEs to change to cleaner technology. 4. A consequence of pushing clean-up measures is that none of the firms made the link between economic gains and environmental improvements. Increase in profitability through improved energy use, better material recovery and reduction of waste are non issues. 5. It is ignoring social issues in the name of the environment. 6. The judicial orders, while they have created some environmental awareness, have not provided solutions. On the contrary, they have reinforced trends which could impede and delay the introduction of improved environmental management and governance practices. [Dasgupta:1998, 1-12]
- 36. of their economicactivities. 2.8.3 The Environment and SSE Recycling Sector From rag picking to reconditioning appliances, SSEs make a great contribution to maintaining environmental standards by finding secondary uses for waste. SSEs are involved in primary collection, recovery operations, reclamation, recycling and by-product generation. Reinventing the City: The Role of Small Scale Enterprise 29 Battery recycling in old Dhaka employing women and children. At right untreated waste from battery recycling on a slope leading to a water source.
- 37. [Fernandez: 1997] However,there are recycling sectors where the environmental implications are of great concern. Battery and plastic recycling are two SSE sectors that can operate with minimal or no environmental procedures in place. The example of battery recycling in India in Box 2.8 provides insight into the possible environmental risks related to recycling. Why so many SSEs are engaged in unsafe recycling activity is of course a matter of economic survival. As Dasgupta points out: "banning these activities as many environmentalists wish to, may be environmentally advantageous but carries enormous social costs." [Dasgupta: 1997] The answer is to develop appropriate policies and technologies to deal with the environmental ills of recycling on a small scale. The work of the Netherlands-based WASTE is the sort of effort that must be favoured to ensure better SSE recycling practices. WASTE promotes pilot projects and research into recycling activity by urban SSEs and promotes discussion on the topic through an electronic newsletter. (see: http://www.waste.nl) 2.8.4 Environmental Problems in Peri- Urban Zones The blurring distinctions between urban, peri-urban and rural is not without problems. As Birley and Lock note, the peri-urban zone can be viewed as a "mosaic of Reinventing the City: The Role of Small Scale Enterprise 30 Box 2.8 Battery Recycling in Calcutta, India The recycling sector employs thousands of workers, directly and indirectly. In one area of Calcutta alone, there are reported to be 210 battery breaking and lead smelting units. The used batteries are broken down to extract the lead plates; this lead is then smelted and made into ingots to be sold to industry. The process of lead smelting is the primary source of air pollution. Lead extraction process The plastic shell of the battery is cracked open and the battery plate removed. The wastes generated at this stage are diluted sulphuric acid and distilled water. The lead plates are then mixed with charcoal and smelted in crude furnaces. The furnace is normally a simple brick structure with four vattis (firing pits). Each vatti has a door through which it is fired. There are no walls separating the four vattis. This means that opening any one door affects the efficiency of all the others. Furthermore, all four are connected to the same chimney stack. The lead which separates from the slag is collected and made into ingots. The slag is stored until a substantial amount has built up. It is then resmelted several times for further extraction. The very crude methods and the outdated technology used give rise to pollution at several points in the process: • There is a high level of noise when the batteries are broken up. • Sulphuric acid is released when batteries are broken up; this finds its way into drains and the surrounding areas, leading to land and water contamination. • Sulphur dioxide and carbon monoxide are released during the smelting process. • Lead oxide forms a major part of the suspended particles released and the fine dust is easily carried by the wind. • Inefficient use of the furnace results in excessive smoke and pressure in the chimney stack, forcing some of the smoke back into the workplace. • Seepage from the slag stored for resmelting contaminates land and water. [Dasgupta: 1997, 293-4]
- 38. different land usesinhabited by communities of different economic status, in a state of rapid change with a lack of infrastructure and a deteriorating environment." [Birley and Lock: 1998, 89] Moreover, there is a growing conflict over land use priorities. Agricultural land is being converted to industrial and residential purposes, and long-standing economic practices that were once out of sight are now very visible and close to residential areas. For example, the following situation involving quarries in Sao Paulo, Brazil is very common in many developing countries where small scale mining and brickmaking permeates the outskirts of urban centres: In Sao Paulo at the beginning of the century, many quarries were situated in the rural periphery of the city; but as Sao Paulo grew, they were progressively surrounded by the urban fabric. Now the quarries are totally within the urbanized area, many of them within the core of the metropolis. As a result, there is growing conflict with local residents and government authorities .... Urban quarrying for building materials (can have significant environmental implications) as the mining of aggregates such as sand and clay has been responsible for polluting streams, the loss of organic soil, large holes in the ground, visual pollution, residual coal and conflicts about the use of land. [Werna: 1997, 291- 392] In peri-urban areas, waste is an enormous problem. One solution would be to find secondary uses for both agricultural and industrial wastes. This is already happening in some peri-urban areas where waste water is being treated in fish farming systems. In the meantime, the agriculture being practised is often dependent on high levels and unsafe use of chemicals. This includes small scale farmers selling to the urban market. There is a high risk and evidence that industrial contaminants such as heavy metals are seeping into food production. [Birley and Lock: 1998] The transformation of the economies of peri-urban zones carries strong implications for the well-being of workers and their families. Work patterns are evolving, as are the frequency and types of diseases. The overall impact, according to Birley and Lock [1998], is a decrease in health standards. 2.8.5 The Safety of the Workplace Reinventing the City: The Role of Small Scale Enterprise 31 Untreated waste water flowing beside the Ferozepur Road in Pakistan.
- 39. Reinventing the City:The Role of Small Scale Enterprise 32 From peri-urban zones to the heart of the city, one constant environmental challenge for SSEs is the safety of the workplace. Increasingly, more and more is being learned about OHS standards in SSEs. There is no clear idea about how many people are injured or killed as result of poor OHS standards. Carr-Harris feels the number who die in work-related accidents is quite high, citing India as an example: "If one extrapolates evidence from various spot studies and population statistics, it is clear that the number of people killed due to occupational injuries would be in the region of 150,000 per year, almost 100 times the official statistic." [Carr-Harris: 33] Carr-Harris also feels that accidents are much higher within the SSE sector than any other sector. She provides the following Box 2.8.2 The CIDA-Supported Tannery Children Centre of Kasur Kasur, with a population of roughly 300,000, is the main tannery centre in Pakistan and recognized as the worst polluter. There are roughly 200 tanneries, about 100 of which operate as part of the informal economy. Many of these informal tanneries operate from homes where women and children are involved with the potentially hazardous process of sheep hair handling. Over 50,000 people are employed in the tanneries, operating within the urban fringe in three main clusters. The tanneries have degraded the environmental conditions surrounding Kasur, posing major health hazards to the residents. The effluent discharged by these tanneries, with its high chemical and biological pollution load and no drainage, has rendered a big stretch of fertile land into lakes of stagnant wastewater. A nauseating smell permeates the air and the city's inhabitants suffer from eye diseases, skin irritations and gastrointestinal maladies. Lung cancer has also been diagnosed as the cause of death in some cases. A significant percentage of all medical visits in Kasur are related to health problems caused by the tanneries. The Lahore-based NGO, SUDHAAR, estimates that 1,600 children between the ages of 6-14 are working in three clusters. SUDHAAR was taken aback by the lack of concern shown by inhabitants for occupational health standards and the need for pro- tection against the harmful chemicals used in the tannery industry. SUDHAAR established the Tannery Children Centre. SUDHAAR began by encouraging children to join the centre to pursue primary education. Tanners, supervisors and parents were encouraged to send children and younger, non-working children to the centre. Since opening, enrolment has tripled to over 180 children, with a staff of four teachers and two community motivators. Other than providing education and recreational opportunities, SUDHAAR has held workshops on occupational safety and health hazards. The staff counsels the children on problems faced at home, the workplace and in the streets. At the demand of mothers, a basic health programme for children and their families has been set up. A small credit programme has started to explore the possibility of support to create economic alternatives. The success of theTannery Children Centre has inspired three additional centres, supported by different agencies, in other parts of Kasur. Over 600 working children and non-working children are enrolled at these centres. [Khan and Khan: 1998 / Morishita and ur Rahman: 1999]
- 40. Reinventing the City:The Role of Small Scale Enterprise 33 three examples of SSEs from India that are of particular concern: 1. Food Processing In Bombay, 51% of the women involved in fish processing were found to be suffering from fatigue, backache, pain in the legs and chest congestion. Skin infections, caused by the bacteria from fish, were also common. 2. Soap Stone, Khadi and Cane/Bamboo Industries There are more than 40 stone grinding units located on the outskirts of Udaipur city. Two hundred workers in five randomly selected units were subjected to a health examination. It was found that more than 20% suffered from respiratory diseases, and more than 6% were coughing up tuberculosis bacilli sputum during examinations. 3. Leather Processing in India A high incidence of tuberculosis and other respiratory aliments has been associated with the dust and fumes emitted during leather processing. Contact with sulphide, chlorine dioxide lime and hydrogen sulphide in tanneries has led to cases of acute toxic poisoning. [Carr-Harris: 14-15] Lowenson claims that SSEs face the same workplace OHS challenges as larger enterprises in terms of physical (noise, heat, dust, electrical), chemical (pesticides, solvents, acids, resins, etc.), mechanical (cutting, grinding and other tools, vehicles), ergonomic (poor working platforms and positions) and biological (such as animal borne disease), as well as problems related to the organization of the work. [Lowenson: 1995, 2] What differentiates SSEs from larger enterprises are the often brutal conditions surrounding the workplace, including inadequate water and sanitation services. According to Lowenson, the factors undermining SSE health and safety standards are the following: ... low levels of capital, use of primitive tools and techniques and a tendency to innovate or take shortcuts in production that, while necessary for economic survival, may pose serious hazards to the worker; poor working conditions, poorly regulated by labour or health and safety laws and poorly monitored by unions, employers’ organizations and the state, as workers, such as those working for their families are not always under formal contracts of employment. These problems are particularly acute in the categories of labour common in informal and small scale enterprises, such as child, casual, family and female labour; the majority of smallholders and a large portion of informal sector workers are female, while many small rural and urban enterprise also employ children ... [Lowenson: 1995, 2] One of the better documented examples of poor SSE OHS standards is the artisanal sector. A survey of occupational illnesses found in traditional crafts in developing countries included: lead poisoning in potters and their families in Mexico and Barbados; lead poisoning in families in Sri Lanka recovering gold and silver from jeweller's waste, using a molten lead procedure; silicosis and other respiratory diseases in agate workers in India; asthma from carving ivory from elephant tusks in Africa; and, respiratory and ergonomic problems among carpet weavers in India. [McCann: 1996, 126] Another disturbing trend identified in the same study is the use of modern chemicals and processes by artisanal entrepreneurs. "As many as 93 cases of peripheral neuropathy from the use of hexane based adhesives in sandal making in Japan; paralysis in 44 apprentice shoe makers in Morocco due to glues containing tri-orthocresyl phosphate; lead poisoning in lead battery repair workers and their families in Jamaica: and leg, arm and back pain and other occupational health problems in home based, ready made garment workers in India." [McCann: 1996, 126] At great risk are children and other family members who are inadvertently exposed to safety risks, especially with HBEs. There are, for example, reports of family members being exposed to hazardous materials brought home on the clothes of workers. [McCann: 1996, 126] SSE workers, entrepreneurs and their family members usually do not have adequate health care or health insurance. They rely more on self-help, traditional health sectors and primary health care services, where knowledge and the resources to cope with OHS problems are poor — i.e., basic capacity to attend to injuries and make the appropriate diagnosis of more serious industrial related illnesses.
- 41. Reinventing the City:The Role of Small Scale Enterprise 34 2.9 The SSE Paradox The inherent difficulty that comes with urban small scale entrepreneurial activity is that what makes it important from an economic and social standpoint is also what creates environmental and health risks. The flexibility, mobility and the absence of laws and regulation may keep mothers closer to children and overhead cost to a minimum, but as has been demonstrated, working in this fashion can carry enormous safety and health risks. The fragmentation and lack of formal organization also make it difficult to provide assistance in areas where there is a definitive need. Yet it remains important to distinguish between real environmental problems and mere nuisance factors. SSE entrepreneurs, workers and everyone living in close proximity to SSEs seem to have a much higher tolerance of some of the impositions brought on by SSEs [see, for example, Gough: 2000]. Care must be taken to identify those issues that people, entrepreneurs and workers truly perceive to be problems.
- 42. Reinventing the City:The Role of Small Scale Enterprise 35 2.10 Summary of Key Points 1. SSEs create an interactive and practical relationship between the home, common space and entrepreneurial pursuits. They are a major defining characteristic of cities in developing countries. 2. SSEs are an important source of economic vigour and social interaction in poor urban communities. 3. The majority of SSEs are home based, owned and operated by women, and use low, often obsolete, levels of technology. 4. The percentage of the urban population finding work in SSEs in developing countries is growing — estimates range between 50% and 75% of the urban economy. 5. There is considerable economic interaction between SSEs and LMEs, the former often providing the latter with products for the production of larger goods. 6. SSEs play a key role in combatting poverty, particularly for women. 7. Using the home as a workplace reduces costs and allows mothers to more easily care for their children, but ‘work’ space tends to have priority over ‘living’ space, and health factors may also be comprised. Some forms of HBEs are ill suited to the kind of space offered — e.g., poorly ventilated dwellings. 8. There is generally a spatial logic to the creation of outdoor SSEs, which serves both cultural and economic factors at play within a community. 9. Although NMVs provide the most mobile, affordable and accessible means of getting around for the poor, many Asian cities are biased against the use of such vehicles, seeing them as backwards and as causing traffic congestion. 10. There is a significant amount of small scale entrepreneurial activity in support of NMVs. 11. In peri-urban areas, there can exist a range of entrepreneurial activity involving the industry, agriculture and service sectors. As this trend continues, new ways will have to be found to better integrate industrial and agricultural activities. 12. Informal settlements offer some important lessons in housing design that is responsive to peoples’ needs. However, there are major issues to be addressed in terms of health and safety standards, especially related to building materials. 13. SSEs face the same challenges as other sectors in terms of local governments not delivering needed services, plus they often operate under inappropriate regulations and by-laws. Consequently, SSEs generally feel local governments do not have much to offer. Few bother to register or pay taxes. 14. Environmentally, manufacturing SSEs can do much harm in poor, under serviced communities, since they tend to be major polluters. 15. Increasingly the lack of appropriate environmental management capacity is causing conflict between local governments and SSEs. Municipal authorities need to develop skills and resources to help SSEs master the environmental effects of their economic activities. 16. SSEs make a key contribution to maintaining environmental standards by finding secondary uses for waste in developing countries (e.g., battery recycling). 17. SSE workers and family members with health concerns usually rely on self-help, traditional healing and primary health care, where the knowledge and resources to cope with OHS- related problems are poor. 18. The flexibility, mobility and absence of regulations, inherent to SSEs, have economic advantages, but there are also significant health and safety risks. The fragmentation and lack of formal organization within the sector makes it difficult to provide assistance in areas where there is a definite need.
- 44. Reinventing the City:The Role of Small Scale Enterprise 37 3.0 Context It has been said that on given day in any city, an uncountable number of decisions are made by entrepreneurs and workers regarding their respective enterprises. [Schoonbrodt: 1995, 65] The overriding factor that influences their choices is profit. Yet, entrepreneurial choices go beyond the realm of economics to influence the physical environment and social fabric of the city. Inversely, entrepreneurial decisions are determined in part by the surrounding environment and social imperatives. Location and space and the availability of resources work with other factors, such as proximity to home and family obligations, to shape decisions. Led by a desire to make cities more suited to their reality, people and entrepreneurs have fought against the mono- functionality of original planning models to define communities through density and mixed function. The challenges and opportunities to promote environmental change and improve conditions exist within this context. What is required is more experimentation and a willingness to work with different ideas and concepts to promote change and innovation. This chapter examines different ideas and strategies for promoting change and innovation from the perspective of understanding when and how to intervene. The ability of urban SSEs to respond to environmental challenges and opportunities must and can be raised to another level of activity and effectiveness. In short, an entrepreneurial spirit must be created where good environmental management practices become more intentional, and are shaped by the internal economic processes and networks found within cities. Beginning with a discussion regarding the role of participation, this chapter will explore the circumstances under which institutional guidance, knowledge and resources can help achieve the desired entrepreneurial spirit. 3.1 The Participation of Entrepreneurs and Workers Over the past few years, there has been a profound reconfirmation of the importance of participatory development. In all types of project activity, development practitioners and government authorities are being challenged to involve stakeholders in a significant manner in the projects intended for their benefit. A participatory approach requires more time and planning, but holds the promise, if carried out correctly, of greater success in securing the long- term commitment of stakeholders. Participatory development implies placing considerable faith in people to articulate problems, and to identify and implement solutions. This can be very intimidating for people, such as local government authorities, who may feel their authority and expertise is threatened. [Pallen: 1997b] This is especially true if local authorities have a relationship with entrepreneurs that is already confrontational. There is growing expertise in the field of participatory practices related to project planning, implementation and monitoring. Local expertise can be found in all developing countries. New participatory methodologies include many for use specifically in urban centres. [IIED: 1994] In India, UNICEF and the National Institute of Urban Affairs designed urban participatory tools suited to the Indian urban context. The ILO's WISE Programme [see Chapter 5], and recent developments in the field of PRA [see Box 3.1], related to micro enterprise, are making it easier to engage entrepreneurs and workers in a more meaningful way. Chapter Three Facilitating Innovation and Opportunity — The Environment and Entrepreneurship in Cities
- 45. Reinventing the City:The Role of Small Scale Enterprise 38 Box. 3.1 Using PRA with Micro Enterprises in Eritrea Participatory Rural Appraisal (PRA) is a general term describing a collection of techniques designed to facilitate the participation of people in projects intended for their own benefit. In Eritrea, PRA techniques were developed to help sometimes illiterate clients work out and forecast their own cash flows and identify production bottlenecks. While PRA tools tend to focus on groups of people, micro entrepreneurship is individual. Southern Zone Savings and Credit Scheme decided in 1997 to find new ways to increase the participation in their business support programmes. PRA methods were developed on two levels: first, in relation to feasibility studies of the economy of the individual household. Second, methods were tried out in relation to social targeting and impact monitoring by village communities. A methodology was developed to analyze both the household economy and the business plan of a client household. The methods takes into account that many clients are illiterate and innumerate but do their planning by mental arithmetic. The methodology received positive feedback from clients. [Sorensen: 1998, 40-48] Although profit will always be the key motivation for workers and entrepreneurs, there are other factors that can influence their outlook. Entrepreneurs and workers are also community and family members and parents. As such, they can be expected to have different concerns and priorities that can factor into their decision to participate. Entrepreneurs and workers can show enormous ingenuity and resourcefulness in coping with day-to-day struggles. Thoughtful and creative participatory practices could bring these instincts and experience into a more proactive realm of problem solving. Participatory methods can be used to approach entrepreneurs and workers on both an individual and collective basis. It is highly possible that entrepreneurs would have a collective interest in tackling a particular problem — such as community housing standards, or water and sanitation services. This was certainly the case inViswas Nager in East Delhi, where local SSE associations worked with authorities to improve infrastructure, and bring water and sanitation services to the settlement. [Benjamin: 1991] There are often existing networks and associations of enterprises that can facilitate collective participation. Many of these associations and networks are informal. It may also be necessary to create new networks, based on common interests. Whether working with existing networks, or creating new ones, self-direction must be at the heart of all collaboration. 3.2 The Participation of Women Given the prominence of women in urban, small scale entrepreneurial activity, the importance of understanding how women view matters cannot be stressed enough. As pointed out in Stren, "women's requirements for land and housing, the structure of households and families, women's responses to urbanization, their ways of earning income, and their access to services" are unique. [Stren ed.: 1994, 322] Their role as mothers forces them to see and interact with their environment in a very different manner from men. Their overriding concern to maintain and secure healthy environments for family members and, in some cases, other community members makes women more receptive to non-economic ideas and objectives. 3.3 The Importance of Starting Small A study on innovations for the improvement of the urban environment, undertaken by the European Foundation for the Improvement of Living and Working Conditions, revealed that micro projects in the urban sector can pay enormous dividends with an initial low capital investment, provided the projects have been well planned. [1996, 9- 14] These micro projects worked well because, rather than trying to change a system, they develop from an existing one. This is similar to the success of small scale NGO activity in developing countries:
- 46. Reinventing the City:The Role of Small Scale Enterprise 39 Integrating development work into existing structures and systems and in particular governments structures can pay rich rewards in terms of impact, replication and sustainability providing the conditions of integration are right ... and ... are more likely to be successful at scaling up if they do so through the planned multiplication of micro level inputs rather than through a process of designing and implementing macro level projects. [Mackie, in Edwards and Hulme: 1992, 70] In a field where little collective experience and expertise has been acquired, the emphasis must be on activities where excessive risks are avoided. The smaller the intervention, the greater the control that can be exercised. Micro projects also play to the strengths of NGOs, community groups, enterprise associations and other smaller organizations — the groups most likely to make a critical difference. The adherence to the principal of starting small is especially paramount when technology is involved. Over the years, the question of technological appropriateness has been one of the most difficult challenges for development practitioners. For this reason, development organizations promoting technological solutions now spend more time on planning and working with end users, to help ensure successful adaptation. Once a product, technology or process is proven to be practical, financially viable and socially acceptable, there is no reason why it cannot be disseminated more broadly. Limited interventions can grow, as was the case of the Jiko and Diambar stoves in East Africa and Senegal, where energy efficient stove models became widely popular [see Pallen: 1997a, 21]. Still one has to be realistic about how much can be accomplished with a micro project: There are two particular issues here for micro projects. First, there is a danger that we overstate the transferability of micro projects and especially the micro elements of larger projects. Both micro projects and micro elements benefits from the synergy they develop with their surroundings. They are, in other words, effective because of the particular relationships and conditions within which they are embedded ...The whole is very often greater that the sum of the parts and unless we are careful we can exaggerate the role of particular ‘micro bits’. [European Foundation for the Improvement of Living and Working Conditions: 1996, 58] 3.4 Improvisation, Innovation and Imitation There appear to be three economic conditions that occur naturally in the economic milieu of SSEs — improvisation, innovation and imitation — that could help support good ideas, technologies and products. 3.4.1 Improvisation The renowned urban specialist, Jane Jacobs, felt that one of the key dynamics in urban economic activity is the practice of improvising: ... the practice of improvising fosters a state of mind essential to all economic development ... no matter what stage development has reached the practice of improvising, in itself, fosters delight in pulling it off successfully ... invention, practical problem solving, improvisation and innovation are all part and parcel of one another ... development is a process of continually improvising in a context that makes injecting improvisation into everyday economic life feasible. [Jacobs: 1985 Vintage Books edition, 149-150] Schoonbrodt sees improvisation as the engine of economic development and defines the practice as follows: "improvising, which guides behaviour and does so constantly ... improvisation concerning both products and industrial methods, the aim being to imitate existing products whilst cutting their production costs ... Substitute materials, inexpensive energy sources ..." [Schoonbrodt, 1995, 57] Whether in the world of music or industry, improvisation requires a mastery of a basic set of skills and knowledge that can be called upon to achieve special ends. In the world of urban SSEs, this is most often seen as a coping mechanism but it is also a skill. The world of SSEs is one where to make ends meet the skill of improvisation becomes paramount. Lowenson [1995] is critical of improvisation in the SSE milieu, seeing it simply as an act
- 47. Reinventing the City:The Role of Small Scale Enterprise 40 of cutting corners, which leads to lapses in workplace safety. This is probably true to some extent. However, improvisation combined with other skills can lead to positive refinements in both products and production techniques [see King: 1996]. 3.4.2 Imitation Very close to improvisation is the practice of imitation. It is a "shortcut, an economic borrowing." [Jacobs, in European Foundation for the Improvement of Living and Working Conditions: 1996, 6] Imitation is not limited simply to products. It can apply to production processes and technologies. Imitation within the SSE sector is widespread, making it realistic to expect that good environmental practices and technologies could be imitated widely. The challenge is to find those technologies and practices that have appeal, and spread their use. King provides the example of the metalworking capacity in the Jua Kali informal sector of Kenya to demonstrate the inherent ability of enterprises on the margins to evolve through imitation: ... (the) spread of basic metalworking technologies is something we have termed technological confidence. This is not so much based on science or technology education in schools, but rather to be a kind of can-do mentality acquired over time both in the formal sector by those who then strike out on their own, as well as by those who develop it entirely within the informal sector. What is noticeable, however, is how rapidly a particular small lead in technology by one Jua Kali entrepreneur seems to be undermined by the speed with which it is copied by others. This points to a high degree of competition amongst Jua Kali with similar levels of technology. [King: 1996, 418] 3.4.3 Innovation Innovation is very much an integral part of the makeup of cities, a by-product of a highly vibrant milieu. How much innovation takes place in the SSE sector in developing countries is a matter of debate. Some observers feel that the SSE sector does more imitating and improvising than inventing. Manu [1998] points out that although the SSE sector has a good record of innovation in the rest of the world, this is not necessarily true in Africa. Others, such as King [1996], feel that innovation is very much present in the SSE sector. If innovation has been occurring in the SSE sector, it has done so without support for research and promotion. The budget worldwide for research and support in the SSE sector is but 1% of all the resources provided to business. [Manu: 1998] Innovation can solve both simple problems and highly complex ones. Even simple innovations have the potential to solve both: "Innovations have to address complex cross disciplinary, lateral and synthetic realities, but they don't have to be complex." [European Foundation for the Improvement of Living and Working Conditions: 1996, 6] Moreover, innovation in support of better environmental practices can come in many guises. In addition to technological advances, there can be economic, social and political innovation that can positively influence the operations of SSEs. 3.5 Promoting More Responsive Municipal Government The movement towards democratic reform and decentralization, taking hold in many developing countries, could not be more timely. Entrepreneurs, and their respective associations, NGOs and development agencies, will be hard pressed to improve environmental standards if local governments are unable to participate. Reform and decentralization must establish more flexible and constructive legal systems related to small scale entrepreneurship. Local governments should be encouraged to experiment beyond traditional institutional boundaries, and to think about how SSEs can be better assimilated into urban planning initiatives. Moreover, structural innovations are needed to overcome the inflexibility and inadequacy of local bureaucracies. Yet, it is not essential to wait until local governments are transformed to begin working with municipalities. There is a lot of room to make improvements in the short term on both a pragmatic and strategic basis. A first step would be to begin working with a select number of municipalities to correct any malaise existing between government officials and the SSE sector. As Stren points out, development agencies changed their attitude towards the SSE sector in the 1970s when it was recognized that the sector has many attractive qualities, such as "adaptability,
- 48. Reinventing the City:The Role of Small Scale Enterprise 41 A realistic examination is also needed regarding all local government departments, in terms of their relationship to small scale enterprise. If the majority of people in cities end up working in the SSE sector, does it not seem reasonable that more emphasis be placed on preparing them to have the skills to excel and improve conditions in this economic sector? Vocational training could be reinforced to correspond with what is being learned informally on the job. New approaches and institutional arrangements could be established to reach out to, train and educate SSE workers and entrepreneurs in occupational health and safety practices. Similarly, primary health care workers need more training in basic recognition and treatment of occupational diseases. In the United States, the Appalachian Center for Economic Networks has been working with small enterprises and local technical colleges to provide health and safety courses for a network of ‘micro firms’. [ACEnet: 1996] This is one direction urban health services Box 3.2 Creative Administration in Sao Pablo The legal and administrative labyrinth meant to oversee quarrying in Sao Pablo was stifling attempts to ensure environmental standards. The Quarry Group was created to deal with urban quarrying issues. This group, taking a proactive role, has helped curb existing conflicts between authorities, the communities and miners. The approach is innovative, at least in the local context. Quarrying group members go to the sites of conflict and work jointly with the community and miners, with the aim of raising the awareness of everyone involved about each others' standpoints, and providing an opportunity to discuss solutions together. [Werna: 1997] Box 3.3 Participatory Planning, Housing and Municipal Reform in Lublin, Poland In 1990, a process was undertaken to revitalize the neighbourhoods of Lublin, Poland. Lublin's Urban Planning Unit launched a ‘participatory planning process’ to involve community members in the rehabilitation of their neighbourhoods. The city and local communities developed a plan for sharing the cost of projects to rehabilitate the local infrastructure in two pilot areas. A key achievement in formulating planning regulations was to promote the development of micro enterprises and home based enterprises, and expedite permitting procedures to stimulate housing renovation and expansion. Within two years, 137 houses were renovated and 50 new buildings constructed; 55 micro enterprises were established in renovated buildings, employing 120 people. [Serageldin and Kipta: 1996, 10] ambition and the willingness to take risks in both bad and good times." [Stren, 1992a, 82] There is a blanket criticism that local governments are set in their ways. In innovative pilot projects, the ILO has had success working with municipalities in both Africa and Asia to overcome the hostility between municipal authorities and local informal entrepreneurs [see Peters-Berries: 1996] The key appears to be to establish lines of communication between the two sides. Eventually a common basis of understanding may emerge, which allows local authorities to focus more on the positive contribution SSEs make to cities, and not just on the perceived chaos and disorganization. More and more local governments are experimenting with new forms of enterprise legislation in support of industrial parks and economic trade zones. This document highlights a number of pilot projects demonstrating how local governments are playing constructive roles in improving conditions for SSEs. Boxes 3.2 and 3.3 illustrate how changes in administrative practices can facilitate improvements in environmental standards.
- 49. Reinventing the City:The Role of Small Scale Enterprise 42 could take. New approaches could be established in such diverse fields as architecture, housing, engineering and urban planning to support small scale entrepreneurial activity. Finally, much more must be expected out of departments of environment. They need the resources and expertise to fulfill broader mandates, to not only enforce standards, but also to take on more of an advocacy role by helping environmentally troublesome SSEs make the shift to greener forms of production. By embracing and working with small scale entrepreneurship, local authorities can benefit from the energy and creativity existing in the sector. This will also raise the possibility of new sources of revenues to pay for services and infrastructure. Tipple provides the example of building more appropriate dwellings for home based entrepreneurship and the opportunities for revenue generation: Where commercial activity is encouraged on residential plots, the potential arises for cross subsidy. For example, corner plots where main routes meet can be particularly highly priced because, upon development, they would be well suited to commercial activity. [Tipple: 1993, 535] 3.6 Informal Regulation As noted earlier, there is an incredible degree of tolerance on the part of neighbours and family members of the noises and other inconveniences created by SSEs. Yet, there are limits to this, and it is often informal forms of regulation that keep SSE activity in line with community expectation. Gough describes the situation in one neighbourhood in Accra, Ghana: Although there is widespread acceptance of the operation of economic enterprises in residential neighbourhoods, the HBE operators are not entirely free to operate when or where they chose. They face potential control by local government officials ... (However) the more informal modes of control of home based enterprises appear to be more extensive than the official channels. The greatest degree of control is (exerted) by landlords who have the power to prevent their tenants from conducting certain activities on their premises. Although many landlords do not restrict their tenants in this manner, some refuse their tenants permission to operate certain enterprises. Other residents of the house or of the neighbourhood at times also exert an influence over the operation of home based enterprises. Although they do not have the same degree of power as a landlord, at times their complaints lead to a change in either the location or the practices of the operators ... the extent of informal mechanisms of control of home based enterprises is very clear. [Gough: 2000, 12] A study in the city of Surabaya, Indonesia, came to similar conclusions: It is instructive to see how social constraints limit the type of economic enterprises introduced, thereby avoiding the most potentially problematic and conflictive circumstances. This is all done without reference to external, official agencies or norms dictating or regulating the type of activity deemed appropriate. [Bishop and Kellet: 2000, 8] Another factor that could be brought into play is family relationships. This is true both in terms of regulating SSEs, but also for more proactive endeavours. In the study noted above of Surabaya, Indonesia, and another in Santa Marta, Colombia, it is revealed to what extent streets and, indeed, entire neighbourhoods can be populated by extended family members. In Santa Marta: "The settlements are not populated by individual households but dense networks of interrelated families. Over 70% of households in the informal settlements of Once de Noviembre and Nueva Columbia have other relatives living in one or both settlements." [Kellet: 2000, 7] Where family relationships permeate a neighbourhood, it could provide a unique foundation for addressing any number of problems facing the community. In Ciudad Juárez, Mexico, a project attempted to convert polluting small scale brickmakers from dirty fuel sources to propane gas. Although the project had limited success, one achievement was the effective use of informal regulation, which saw trade unions and community members living in close proximity to the kilns enforcing standards:
- 50. Reinventing the City:The Role of Small Scale Enterprise 43 Trade unions and neighbourhood associations were convinced to support the propane initiative and played a central role in implementing it. In certain backyards, they created rules regarding which fuels were permissible, monitored compliance, and imposed sanctions on violators. In addition, to enforce a ban on burning debris (as a fuel source), the municipal environmental authority relied on citizen complaints to identify kilns that were not in compliance. [Blackman: 2000, 12] 3.7 NGO Involvement in the SSE Sector Two studies supported by CIDA identified another major problem related to improving the environmental standards of SSEs — the near absence of NGOs working in the SSE sector on environmental issues. Even in the field of workplace safety, where the interests of women and children are paramount, there are relatively few active NGOs. The exceptions are NGOs working on child worker rights, and to a lesser extent home based workers in the textile industry. There are also other NGOs addressing the extreme environmental impacts of highly polluting SSEs, such as the small scale tanneries described in the previous chapter in Kashur, Pakistan. Given the unique circumstances under which SSEs operate, there can be substantial barriers to anyone being able to provide effective assistance, other than those with a strong understanding of the entrepreneurial milieu and the communities in which SSEs are active. For this reason it would be advantageous to partner with local intermediators, such as NGOs and community groups. To do this, NGOs and community groups must be better informed about small scale entrepreneurship and issues relating to the environment. Local government weakness could then be partially overcome by a more capable NGO sector that would have an easier relationship with entrepreneurs and their associations than local authorities. 3.8 Land Tenure When Chilean development specialist Hernando de Soto was asked what needed to be done to control the negative environmental impact of the informal sector on cities, his answer was land tenure. De Soto felt, as many do, that unless people feel they have a long term interest in maintaining a property or a piece of land, they will not do so. [Fernandez-Morera: 1999,7] The argument goes that land tenure would encourage people and families to make more concerted efforts to improve, not only their living conditions, but their communities as well. Given the vast number of people affected by this issue, one would expect there would be more examples of creative solutions to land tenure problems to provide some guidance. There are, however, very few good examples. Perhaps the most positive finding has been that people are willing to make improvements in communities even without absolute land tenure. Case studies demonstrate that a simple guarantee on the part of local authorities to leave informal settlers alone for a year or more will result in community improvements. [Payne: 1997] This discovery bodes well for finding more intermediate solutions to any number of assorted problems found in informal settlements that, historically, have been blocked by the lack of land tenure. 3.9 Enterprise Incubation and Extension Programmes Enterprise incubation, the practice of providing technical support and services to enterprises has a long history in developing countries. Incubation programmes work from the principle that while individual firms may not be able to afford technological research and consultancy services, groups of small enterprises can contract services from any number of sources. A joint UNDP/IADB/UNIDO review of incubator programmes in developing countries revealed that: "They can be a cost effective instrument in the creation of new enterprises and in the development of jobs. Over 1,500 incubator programmes were known to be in operation throughout the world in 1996." [Lalkaka and Bishop: 1996,VII-VIII] Extension programmes attempt to offer similar services to incubation programmes, often by establishing a permanent physical base within reach of entrepreneurs. Historically, there has been difficulty in reaching out to small and micro entrepreneurs, although the situation with small scale entrepreneurs is not as desperate as with the micro/informal sector. Part of the problem has been that enterprise incubation programmes are often sponsored by the public sector, "the sector that is least in a position to provide effective help." [Stren: 1992a, 64] Wilson provides an outline of what he feels is necessary to make an extension programme successful:
- 51. Reinventing the City:The Role of Small Scale Enterprise 44 ... programmes could be established on a sectoral basis where there is the basis of a shared culture between firms ... within, a given sector, an extension programme should be able to map reasonably accurately firms’ needs, but the key issue here is the extent to which extension workers are themselves prepared to learn the characteristics of the enterprises they are helping. Such learning would appear to be essential if the extension worker is to recognize the unique technological capability requirements of different enterprises and to build upon that which already exists. In other words, extension support needs to start from what an individual enterprise already knows and does, rather than what it does not know to do, and be prepared to act as a participatory facilitator in the technological learning process. Then, the potential exists to develop capacities for incremental learning that both optimizes the day-to- day capability and takes the firm beyond it. [Wilson: 1996, 498] Box: 3.4 An Experiment in Support of Small Urban Producers in Benin The Small Urban Producers Programme (SUPP) used five principles in a participatory support strategy for small handicrafts producers, derived from an initial experiment carried out between 1982 and 1989 in 15 towns in Mali, Rwanda and Togo. Namely: 1. Respect for local creativity and initiative. 2. Minimization of recipients’ dependence on external factors, by mobilizing local resources. 3. Consolidation of the social cohesion of target groups by encouraging self-organization and creative experimentation, even at the risk of error. 4. Promotion of broader negotiations with existing institutions by emphasizing consultation, rather than heavy handed control. 5. Promotion of networks between grassroots organizations, sharing a spirit of solidarity and self-reliant development, with a view to strengthening relations among them. SUPP worked with the Government of Benin to refine methods used in enhancing the capacity of small producers to develop group strategies and set up cost-effective, group-based production support services. The method combines: a financial instrument (mutual savings and loan associations); a technical and production promotion instrument (common facilities workshops); a marketing strategy (market development and diversification); and, above all, the promotion of independent socio-occupational federations. The previous projects taught that direct micro economic support to small producers can assist the development of sustainable and replicable structures only if accompanied by macro economic and institutional measures to foster micro enterprises and create a climate conducive to their work. SUPP derives from a concept of participatory development in which three conditions must be met for external assistance to have an internal catalytic effect: 1. Gradual mobilization of the participants’ own financial, technical and human resources with a view to their self- reliance. 2. Organization of participation aimed at stimulating the recipients’ desire for improvement and affirming their social identity. 3. Institutional recognition and representation of participants, enabling them to negotiate, assert their rights and cope with the constraints inherent in their unfavourable economic and institutional environments. The enterprises, therefore, co-operate through flexible and loose networks to establish contact and support structures controlled by the producers themselves. The approach combines the flexibility of micro enterprises with the economies of scale to be gained from common support facilities. [Maldonado: 1993]
- 52. Reinventing the City:The Role of Small Scale Enterprise 45 To make enterprise incubation and extensions programmes effective, it is important to avoid simply scaling down or transferring technology and management techniques used in larger enterprises. New managerial options and training services must be developed for SSEs and their respective entrepreneurial milieu. The example in Box 3.4, regarding small scale producers from Benin, is important in that it shows how government, creative financing and participation can be brought together in an innovative fashion. Finally, SSEs need assistance in making improvements in product design, productivity, quality, management and marketing. Clearly this is closer to their priorities than environmental management. However, working on these issues can also open the door to introducing better environmental practices. 3.10 Financing While the health risk of bad water, poor sanitation and the like have not been forgotten, it is no longer conventional to treat them as complex environmental problems requiring better science, innovative responses and social mobilization. Rather, by and large, they are viewed as problems whose solutions are known, but for which the requisite finances are not always available, to which insufficient priority is given, or which require a somewhat different mix of public and private sector involvement. [McGranaham et al., in Pugh: 1996, 110] The above reference to urban environmental problems and the poor touches on the all too important question of the availability of financial resources. Although there exists room to undertake activities at little or no cost, there is a need for financial institutions and services that entrepreneurs can trust. Such financial resources should also be located in the communities where the SSEs operate. The practice of micro finance, whereby entrepreneurs obtain loans for small amounts, is growing in developing countries. Previously a rural phenomena, micro finance services are becoming more established in cities. Micro finance has become an effective tool in generating employment opportunities for entrepreneurs and workers [see Khander et al.: 1998]. Not only are there more and more organizations with the main objective of lending money to poor entrepreneurs, there are also a growing number of municipalities, in countries such as India and Peru [see Box 3.5], experimenting with micro finance as a means to providing infrastructure services and transportation for the poor. Housing is another area where innovative financing schemes have been developed to facilitate the upgrading, renovation and extensions of the homes of the poor. As Mitlin [1997, 46] points out: "There are numerous new models for providing housing finance to low income households that have been developed over the last 15 years. They have been developed to support a large scale process of incremental housing development through loan finance. Many of these programmes have secured high repayment rates." Similarly, micro finance schemes are being used to facilitate positive new developments in the Box 3:5 Government Support for Bicycling in Lima, Peru In some places, the greatest obstacle to cycling is also the most basic — lack of a bicycle. In many developing countries, bikes may be absent from the urban landscape because they can cost a month's salary or more. The municipal government of Lima, Peru, has addressed this issue by setting up a micro credit programme to facilitate bike purchases. Twelve-month loans of $100 have been made available to low income citizens. The city is capitalizing on people's desire to bike. Research has shown that two-thirds of men in the project area, and more than half of the women, would cycle if they had access to a bike. Together with the expansion of bikeways, the loan programme is part of the city's declared effort to increase the share of trips made by non- motorized vehicles from 2 to 10 percent. [Gardner: 1998, 20]
- 53. Reinventing the City:The Role of Small Scale Enterprise 46 water and sanitation field that call for a more prominent role for low income urban communities in designing, delivering and maintaining community water and sanitation services. [see Cotton et al.: 1998] The experience of micro finance in support of micro enterprises, housing construction and renovation, and water and sanitation for the poor demonstrates that there are options for being creative in terms of the environment. There is a growing and varied community level financial expertise that can now be called upon in all countries. It is also equally important to keep in mind that the urban poor are much more financially capable than people give them credit for: The living environments of low-income settlements can be substantially improved at relatively modest per capita cost through the provision of basic infrastructure and services. The cost constraints of making available such facilities seem to be overstated, while the willingness and ability of poorer groups to pay for improved services seems to be underestimated. [Lee Yok-Shiu: 1998, 993] Another avenue that needs to be explored is how SSE associations and networks can be approached to finance neighbourhood improvements and obtain services that benefit not only their industries, but the communities in which they operate as well.
- 54. 3.11 Summary ofKey Points 1. Never lose sight of the importance of the participation of entrepreneurs and workers in all activities. 2. Because women are a majority of urban small scale entrepreneurs, take the necessary time to understand their opinions and value their participation. 3. Micro projects in the urban sector can pay enormous dividends with an initial low capital investment. For this reason, place a greater emphasis on well planned micro interventions. 4. Understand the context in which you are working. The density, mixed function of communities and proximity of SSEs to each other are but a few of the factors that should be understood in developing environmental improvement strategies. 5. Improvisation, innovation and imitation are three elements of SSE activity that could facilitate the promotion of new ideas and technologies. Understand how they can be used. 6. Embrace diversity and experimentation. 7. Encourage entrepreneurs and workers to take responsibility for project activities. 8. Consider promoting the use of informal regulation, such as peer and family pressure, to prod entrepreneurs into better environmental practices. 9. Explore the area of enterprise incubation and other traditional enterprise development tools to determine how environmental and entrepreneurial gains can be made. 10. Ensure that appropriate financial services and resources are available. This implies that services should be close to where SSEs operate and that they are managed by organizations which have the trust of entrepreneurs. 11. Work with local governments to make selective changes in local laws and by-laws for the benefit of the environment, workplace safety standards and economic production. 12. Examine how local non-environmental and economic institutions can be mandated to facilitate change. 13. If land tenure is an issue, consider intermediate solutions that allow a degree of security for occupants to invest in improvements to their homes and communities. 14. If necessary, study the growing field of micro finance to determine the appropriate financial services to assist entrepreneurs and support their attempts to improve environmental conditions. Reinventing the City: The Role of Small Scale Enterprise 47
- 56. Reinventing the City:The Role of Small Scale Enterprise 49 4.0 Introduction There are countless little and not so little ways in which cities could be made better places by improving SSE workplace and environmental standards. The case studies and ideas presented in the remaining chapters demonstrate that once the SSE sector becomes a planning variable, previously unthought of options are created for addressing long-standing problems. Housing developments, streets, public spaces and entire neighbourhoods could take on a variety of different forms in light of better factoring in the needs of SSEs. This chapter begins with a look at potential changes in the transportation sector. 4.1 Transportation In San Salvador, the local distributor for Pepsi found that a bicycle and trailer could deliver 900 cases of soda per month — as many as the previous delivery vehicle, a 5-ton truck, but at a fraction of the expense. The bicycle proved well suited to deliver quickly to the numerous and closely spaced delivery points (small shops and homes that stock a few items for sale to neighbours). Similarly, the experience of the largest industrial bakery in Bogotá, which replaced 200 delivery trucks with 800 tricycles a few years ago — a move that substantially lowered the cost of deliveries to its 22,000 daily customers. [Gardner: 1998, 18-19] Chapter Four Redesigning Communities
- 57. Reinventing the City:The Role of Small Scale Enterprise 50 The level of technology advancement in relation to bicycles has remained, by and large, fixed for generations in bicycle-orientated countries such as China [see Newton: 1993]. Yet in North America, there has been significant improvements in bicycle technology in terms of components, wheels, and the weight and durability of frames. There is also a growing use of various trailer and cargo technologies. In Canada, one cargo bike business has secured a contract with the University of British Colombia to furnish the university with the necessary bikes to make the transition to an automobile free campus. One of the cargo bikes is reputed to be able to transport a mobile home [see www.bikecartage.com]. The experience of Pepsi and the industrial baker in Bogotá are reflective of the type of practical and realistic approaches to urban transportation that must be encouraged and accommodated. Simple adjustments can be made in the design of roads, streets and alleys to allow NMVs to circulate more securely and effectively. This can come in the form of separate lanes or pathways for NMVs or shared routes, where as the World Bank suggests, adjustments are made in terms of speed, and where and how motorized and non-motorized modes link. [World Bank: 1995] In Asian cities, such as Shanghai, Tokyo, Dhaka, Hanoi, Chiang Mai, Kanpur and Surabaya, exclusive NMV routes are found to varying degrees in the shape of lanes, pathways and parking areas that have been designated for NMV use. [World Bank: 1995] In Box 4.1, the success of the city of Pune, India, in developing a network of bicycle and pedestrians paths is described. Pune demonstrates how the addition of a well planned lane or pathway can be highly effective and contribute to increased NMV use. In those parts of town where SSE activity is significant, a pragmatic approach to transportation is required. The proof that this approach will work is found in settlements such as Viswas Nager in East Delhi, where the transportation of goods by cycle-rickshaws facilitated the growth and establishment of one of the key manufacturing centres in India. The city of Lima, Peru, has also proven this is possible [see Box 4.2]. Although in Lima the aim was to transport workers from informal settlements to their place of work, how difficult could it be to design non- motorized transport systems facilitating the movement of workers, goods and services within a community? In addition to improvements in transportation routes, more attention must be paid to the quality and capabilities of NMVs and certain forms of motorized vehicles. In the case of NMVs, the objective must be to make improvements in speed, durability and capacity to transport goods. The technologies related to bicycles and carts are not complicated, and there is considerable room to innovate and make improvements. Box 4.1 Sustainable Transport in Pune, India In India, the city of Pune and the state Government of Maharashtra, working with the World Bank, developed a transportation system designed to provide safe, quick and easy routes for pedestrians and non-motorized vehicles between residential areas and the city centre. The project aimed to improve the efficient running of essential motor vehicles on existing roads, by removing conflicts with bicycles and pedestrians. Pedestrians, cyclists and bicycle rickshaws had been accounting for 85% of all traffic casualties, resulting in five deaths a week. A network of bicycle/pedestrian lanes and specially designated overpasses and underpasses has been created. It is estimated that 46% of cycle trips will be diverted onto the new network, leading to a substantial reduction in accidents. In a city where each home owns a bicycle, and another 50,000 are available for hire, the project contributed to increased bicycle ownership. Accidents are decreasing and traffic on the main routes are moving at higher speeds. The first phase of the project was completed in 1993, at a cost of US$ 2.3 million. [Hathway: 1994/95]
- 58. Reinventing the City:The Role of Small Scale Enterprise 51 Box 4.2 Bikeways Come to Lima's Mean Streets: Innovative Transport for Low Income Communities Over 1,350 people a year are killed by motor vehicles in Lima, and over 70% of the victims are bicyclists or pedestrians. Recently, the mayor's office of Lima launched a plan to increase bicycle use, from a current level of 2% to 10% of all trips: by building 86 kilometres of bike paths; by making low interest loans available to help low income families buy bicycles; and, by promoting bicycle use [see Box 3.5]. The main artery of the bikeway network joins low income areas in the Northern Cone of Lima with the important urban industrial zone, where nearly 9,000 enterprises employ over 70,000 people. When completed, there will be 51 kilometres of cycle ways and 35 kilometres of bike paths on reconditioned service roads. The people in this area live within six kilometres of their workplace, a distance ideal for bike commuting, and are poorly served by expensive and irregular public transit and para-transit services. Similar projects are planned for the Peruvian cities of Cuzco and Arequipa. [Peters: 1997] Cargo carrying bicycles in Jaipur, India.
- 59. Reinventing the City:The Role of Small Scale Enterprise 52 There is an attitude that only the rich benefit from environmental improvements. In the case of small scale motorized vehicles, this generalization could not be further from the truth. Moreover, the Nepali experience with non polluting taxis is one of the rare examples of successful enforcement of environmental standards in the SSE sector. The factors contributing to its success were an extensive test period, donor support, and strong political and public will to address the problem. Elsewhere in South Asia, CIDA, in collaboration with Environment Canada, have a number of pilot projects at various stages of development related to the conversion of two stroke, three wheel auto-rickshaws to compressed natural gas (CNG). Natural Resources Canada is supporting an initiative by a Canadian entrepreneur to promote motorcycles that operate with alternative fuels utilizing refillable energy packs. Box 4.4 looks at other initiatives to improve the environmental performance of small vehicles, outlining two fundamentally different attempts to solve the same problem. The contrast in the two examples provides a sense of what the future could hold. 4.2 Facilitating Sustainable Home Based Enterprise Given the popularity of, and economic need for, home based entrepreneurship, and the ongoing housing crisis facing cities throughout the developing world, this would appear to be an area where significant developments should take place. New housing models need to be established that recognize and encourage better coexistence between economic and domestic activities. Greater effort should be made to understand how the technology being applied to bicycles, carts and trailers today can be adapted for practical applications for urban transport in poor communities — for example, as the Institute for Transportation and Development Policy is doing in Africa and Haiti [see Box 4.3]. The Intermediate Technology Development Group in England is another organization that has made improving the performance of trailers for work purposes in rural areas a priority. Given the pollution problem of small motorized vehicles, stronger attempt must be made to promote less polluting forms of transport. The major benefit of non-polluting, small sized vehicles, as opposed to the polluting ones that are in widespread use in urban centres, is clear — a healthier and more agreeable environment. In Nepal, Swiss development assistance supported the creation of a fleet of mini buses, which run on electricity. The minibuses had been on the road for a few years, under strict monitoring, when the Nepali government announced that the three-wheeled polluting Vickram tempo taxis (auto rickshaws) would be banned from use in Nepal's three largest cities. [Economist: 1999] Today, despite logistical and technical problems, all minibus taxis in Nepal run on electricity or liquid propane gas. Passengers in Kathmandu have indicated a clear appreciation of travelling with the exhaust free electric vehicles. [Pallen: 1997c] Box 4.3 ITDP: Bringing Bicycles and Trailers to the Poor In Johannesburg, South Africa, the Institute for Transportation and Development Policy (ITDP), working with the Afrika Cultural Centre, is building on the success of ITDP's Workbike Project. The Workbike Project involved providing bikes and trailers to small scale enterprises for transportation and delivery services. In 1999, ITDP began implementing the Workbike Centre Project — a multi-functional facility that will provide technical support, training, small loans, subsidized bicycles, ‘workbikes’ and trailers to local artisans and vendors. Similarly, ITDP has launched a project with an orphanage in Port-au-Prince to establish a bicycle programme where teens will earn their own bicycles and learn how to use them to navigate the city streets, earning income as bicycle messengers, mechanics, mobile vendors and collectors of recyclables. [Hook: 1998]
- 60. Reinventing the City:The Role of Small Scale Enterprise 53 Box 4.4 Improving Small Scale Motorized Transport Solo-Taxi in the Philippines In a UNEP-sponsored project, experts were looking at ways to improve the performance of the solo-taxi (motorcycle/one passenger transportation) for the NorkisTrading Corporation in Cebu, the Philippines. The aim was to develop a new model of solo-taxi that was both more environmentally and economically efficient. The durability of the motorcycle was considered, as well as fuel economy and the reduction of hazardous exhaust gases. There was a 50% reduction in the cost of the overall solo-taxi customization; reduction in material costs reached 70%. Improvements included increased convenience for driver and passenger (e.g., increased possibility for the passenger to secure his/her position, hand luggage carrier and adjustable foot rest for passengers). The solo-taxi, as a whole, became less heavy and more speedy. [Brezet: 1997] The Solar Baby of Malaysia Starting in 1994, Frazer-Nash — a high tech company in Britain — put together a team of engineers and designers to develop a non-polluting alternative to the petrol and lead gas fuelled motorized auto-rickshaws found throughout Asia. The new vehicle, named the Solar Baby, saves on energy by powering each wheel by a separate motor (located on each corner behind the wheel). In the centre of the car is a box of electronics which controls the power fed to each wheel. When driving straight ahead, power is fed equally to all four corner wheels, but turning a corner produces a huge power saving. The electronic controller will notice that the outside wheels need more current than the inside wheels, and will automatically deliver equal torque at differential speeds. Energy is also saved in breaking. With conventional vehicles, every time the driver brakes energy is wasted in heating the brakes. With Solar Baby, when the brake is applied the motors are switched to become dynamos, turning kinetic energy into electrical energy which charges the battery as the vehicle slows down. As well, the solar panelled roof converts radiation from the sun into electrical energy, providing a trickle of power back to the battery pack, giving the rickshaw around a 15 kilometre extra range each day. The battery is easily recharged. While the efficiency of standard vehicles runs at around 20%, Solar Baby scores an impressive 95%. The cost of running the Solar Baby is one-fifth the cost of the standard auto-rickshaw. Recently, the Malaysian government backed mass production, with fleet operators now operating five-seaters. The ultimate target is to make Solar Babies available to individual users. [Pastakia: 1999, 26-27] The electric auto-rickshaw of Kathmandu.
- 61. Reinventing the City:The Role of Small Scale Enterprise 54 This should also involve, where possible and necessary, the incorporation of cultural, religious and family values. At the same time that more experimentation in housing design is taking place, general improvements in construction and renovation practices should also be encouraged. The Building Centre Movement in India [Box 4.5] is a good example of what can be accomplished with local trades people to improve and diversify housing options and expertise. In countries such as Nepal, many experts feel that the starting point for improving housing standards is to encourage a greater use of traditional building practices: An approach to housing design that combines the best elements of both the traditional and modern systems is seen to be the most suitable in Nepal. Spacial layout, aesthetics, building materials and construction techniques should be primarily based upon the traditional system. Technical details, such as moisture, water and environmental control and sanitary systems are best carried out through modern materials and technology. [Andhkari: 1998, 11-12] Box 4.5 The India Building Centre Movement The India Building Centre Movement aims to assist people by developing appropriate housing delivery systems through participation, using environmental friendly solutions, and developing the right level of skills among local artisans. The Building Centre Movement facilitates the transfer of technology from lab to land, promoting the use of predominantly local materials and resources with appropriate technology inputs — either in the production of building components or in construction techniques. The strategies adopted by the movement are: • training and skills upgrading of construction artisans, in terms of alternative, innovative sustainable building materials and technologies; • assistance in the production of various building components at the grassroots level; • utilization of the services of trained artisans, along with beneficiary households, in housing construction employment generation schemes; • utilization of locally available and innovative materials; • reduction of consumption of energy-intensive materials (such as cement and steel), and use of appropriate technology; • construction of affordable shelters and innovative construction techniques; and, • provision of housing guidance and information to beneficiaries. Financial assistance is provided for housing. After this initial assistance, supplementary support is given in the form of soft loans for equipment, machinery and working capital. To promote the spread of building centres, the government has given fiscal incentives, such as the exemption of excise duty and a reduction of customs duty for various building elements and components. The achievements of the Building Centre Movement are: • the use of cost-effective, environmentally friendly technologies has led to solutions with 15–40% savings over conventional technologies; • the network of building centre has spread to 385 locations throughout India; • over 55,000 masons, carpenters, bar benders, plumbers and other construction artisans have been trained to use innovative and cost-effective technologies; • women construction workers have been trained and can earn wages equal to their male counterparts; • construction worth over 2 billion Indian Rupees has been completed using the innovative technologies; • innovative technologies have been used in building social amenities and infrastructure building, lending credibility to the use of such technologies for all applications; and, • the production of building materials and components required in the application of the technologies has contributed to the development of micro enterprises. [Bestpractices on the Web (a)]
- 62. Reinventing the City:The Role of Small Scale Enterprise 55 Similarly in Pakistan, a movement is afoot to reclaim traditional architectural practices that lend themselves to a better living environment. The ‘wind catcher’ is a traditional technology, formerly found in Karachi homes, that draws wind in to cool overheated houses. [Pallen: 1999] The Aga Khan Foundation in Islamabad has launched the Building and Construction Improvements Programme to promote traditional best practices and improved building materials and techniques. The programme aims to build and retrofit homes to better suit them to the climatic extremes of Pakistan, and to eliminate other problems such as poor ventilation. [Nienhuys and Saeed Shaikh: 1999] In terms of housing design, there would appear to be endless possibilities of coming up with different models to better integrate work and domestic requirements. A starting point would be to examine what is presently occurring informally, in terms of home renovation to retrofit homes for HBE activity and other purposes. Trends should emerge within individual communities that can be studied and possibly enhanced. It would be a good start to develop new models that reflect what is actually happening, since informal retrofitting of homes is guided by realism and pragmatism. The handloomer weavers in Kancheeprum, India, [see Box 4.6] provide a very practical example of how, in addressing the problems of home based enterprises, opportunities are created to address other problems. Another illustration from India is the case of the basket weavers in Box 4.7. A very different scenario from Venezuela is presented in Box 4.8; this initiative is a good example of how some of the elements outlined in Chapter Three, such as the use of micro finance, contribute to project success. While the Venezuelan example did not benefit from strong government support, the cases from India highlight the important role a supportive and flexible local government can play. Box 4.6 Integrated House-Work Area Project for Handloomer Weavers in Kancheeprum, Tamil Nadu, India Handloom weaving is the main source of income for many Kancheeprum households. The handloom weavers undertake various tedious tasks related to obtaining the yarn, dyeing it, reeling it, and weaving various textile products. Their quality and productivity depends greatly on the living and working environment, the nature of materials used for walls and roofing, and the location of ventilation and light in working areas. Local authorities and financing institutions did not recognize home based handlooming as a legitimate economic activity carried out in legitimate workplaces. The Housing and Urban Development Corporation (HUDCO) and the Ministry of Handloom andTextiles developed a project to integrate economic development and improvements in living standards for handloom weavers. Based on families needs, a house-cum-workshed scheme was launched which led to a design to integrate house and work space. A participative approach was followed by the weaver households, architects and engineers. Loans were provided to handloom families to make improvements. In 20,000 houses, the combination of employment generation, economic development and conducive habitat development — integrated at the level of house and community — is demonstrating positive results. In support of the new homes, improved sanitary facilities and potable drinking water have also contributed to bettering the health conditions of the people in Kancheepuram. This model has proved to be very successful and is being replicated in different parts of India, not only for weavers, but for other home based workers such as beedi-workers, sericulture workers and coir-reelers (i.e., by their respective government departments). [Best Practices on the Web: 1998]
- 63. Reinventing the City:The Role of Small Scale Enterprise 56 4.3 Supporting SSE Outside the Home There is potentially as much promise in devising new arrangements for SSEs outside the home as within. To date, experimentation in this area is very limited. There are examples of attempts to improve the organization and cleanliness of open markets, such as what was recently attempted in the Andravoahangy market of Antananarivo, Madagascar. This is important, but more profound changes related to street and community planning are in order. To ensure that created spatial environments — whether they be found in marketplaces, streets or industrial parks — facilitates small scale enterprise, certain steps must be taken. Depending on the type of enterprise, this could mean: Box 4.7 Basket Weavers Housing Project in Coimbatore, India In Coimbatore, a HUDCO project with basket weavers sought to improve working and living conditions. The project's aim was to provide compact and efficient designs with minimum shelter and working space for the weavers, while causing the least socio- economic disruption through onsite rehabilitation. The project was a low rise, high density development. Thirty-nine experimental housing units, demonstrating innovative, cost effective technologies, were combined with 76 conventional housing components. Beneficiaries were provided with open spaces within units (i.e., verandas/terraces) to accommodate the activities of basket weaving. In addition, lofts were provided for storage of materials/products. Space was also provided for marketing activities related to basket weaving. [Best Practices on the Web: 1998a] Box 4.8 Barrio 19 de Abril in Venezuela In the town of Barquisimeto in the state of Lara,Venezuela, a successful multidimensional home based enterprise projet has been underway for two years. The Barrio 19 de Abril is a community of about 2,500 families, many of whom are very poor. The project, supported by the La Universidad Central Lisandro Alvarado (UCLA), collaborating with the Community Production Unit — the lead community organization — promotes the notion of productive housing, calling for the replacement of sub standard homes with more suitable ones that can integrate economic productive activity. The housing units are designed to permit expansion in stages, as family size and economic activity expands. Another component is the implementation of a technical training programme for home based workers. The families chosen to participate are amongst the poorest in the Barrio. Forty families have been involved in the initial stages to build their new homes. Another 50 families have expressed their interest and commitment to participate in the second stage. A loan scheme was developed to allow families to pay for the cost of labour. A number of international NGOs underwrote the cost of construction materials. Despite a number of initial obstacles, related to financing and government support, the project achieved the following: 1. The development of a successful highly participatory community self-management model driven by community members. 2. The creation of artisan worker associations from the informal and formal sectors. 3. Technical innovations have been introduced allowing optimization of traditional construction systems, and making extensive use of environmentally sustainable materials, traditional architecture and building techniques. 4. The development of community waste recycling systems. [López: 2000]
- 64. Reinventing the City:The Role of Small Scale Enterprise 57 1. Ensuring access to population movement. 2. Close proximity to suppliers. 3. Accessible transport to work sites and wholesalers on foot or by bicycle. 4. Streets made congenial for economic exploitation, notably main roads and feeder roads. To accommodate these functions and at the same time guarantee a smooth flow of traffic, roads need to be wide. 5. Maintaining a mix of commercial activity. 6. Outdoor activity relates to the activity inside local shops. 7. Respect for the type of activity. Small manufacturers and craftsmen, for example, usually sell directly to the consumer, and therefore require sites with commercial potential (i.e., markets instead of light industrial area). [Adapted in part from Post: 1996, 34-41] In terms of street vending, road layouts and street widening would be two critical areas where changes can be made. If entrepreneurs can see improvements being made in the physical configuration of neighbourhoods, it will be easier to approach them and their associations to assist, for example, in monitoring the number of enterprises allowed on a specific street. There could be further support for other endeavours if, for example, improved water and sanitation services are in place. Special areas in settlements and communities could be designated for entrepreneurial activities that cannot be accommodated within housing units (as per the suggested proposal for a low income settlement in Egypt, highlighted in Box 4.11). Another option is to create common workshops that are controlled by entrepreneurs. This is similar to work spaces within residential units, except that the strategy would be to focus on providing workshops to serve specific industries. Common workshops would respect the scale and nature of common enterprises, with the added possibility of creating economies of scales for the purchase of equipment and other productive inputs. Boxes 4.9 and 4.10 are examples from Brazil and Benin of common workshop facilities for a cross-section of small enterprises. Note: In the next chapter, the concept of clustering industries, to see how environmental technologies and services can be shared, is re-examined. Box 4.9 Mutirao Housing Bee 50 Project in Conjunto Marechal Rondon Shanty Town in Fortaleza, Ceara, Brazil This project began with the construction of a large shed for training residents in home construction techniques. This led to three more sheds used by community-based micro enterprises for manufacturing and selling ferro-cement, stone blocks and bathroom fixtures. Subsequent discussions with community members led to the development of two model homes using material produced by local micro enterprises. Land was donated by the Fortaleza City government, which also provided the necessary infrastructure. To date, 52 previously homeless families have been provided shelter. A 10-store business area has been added, which in addition to providing commercial services, generates rental income that goes into a fund to repay loans used to start the project. Money has been raised to establish a micro industrial park for such businesses as metalworking, carpentry, and the manufacturing of house slippers, school bags and toys. The Rondon experience is being repeated elsewhere in Fortaleza and the rest of the state. [GRET: 1999]
- 65. Reinventing the City:The Role of Small Scale Enterprise 58 Box 4.10 Common Workshops Facilities in Benin: Woodworking, Metalworking, Sewing and Dyeing Services Very few small producers can afford the equipment they need to ply their trade in satisfactory conditions. Since they operate in an undercapitalized sector of the economy, they are seldom able to borrow investment capital through official financial channels. Mutual savings and loans associations are endeavouring to remedy this deficiency. Some types of equipment will always remain beyond the investment capacity of individual entrepreneurs. To address this problem, four common work facilities were established in Benin to provide the following facilities: * workshops where machines tools and small portable equipment are available for use on a fee paying basis; * a unit for designing new products and developing prototypes — this also houses catalogues and other documentation that create an environment conducive to technological innovation and self-training; * a space to serve: a) as storage for raw materials and supplies that mutual associations purchase wholesale for retail (i.e., slightly below market prices); and, b) as a sales and display area for craftsmen's products; * a room where craftsmen's trade meetings are held, and where literacy and technical training courses are given. The common facilities workshops were found to provide a convenient place for craftsmen to meet and exchange views. They discuss problems, share information on trade and technical matters, discuss social issues, and consult each other on their work. [Maldonado: 1993] Box 4.11 SSEs and Community Upgrading in Telal Zeinhoum, Egypt The Telal Zeinhoum settlement, located in the heart of Cairo, has been scheduled for redevelopment. Telal Zeinhoum has a population of about 20,000, with a high percentage of young, illiterate and poorly educated people, who are unable to procure work other than the most menial. Local authorities have determined that Telal Zeinhoum will be revitalized in two ways: * demolition and building of new houses and upgrading of existing sub standard housing; and, * supply of infrastructure (social, economic, water, sewers and electricity). To begin the process of how these changes will be implemented, planning workshops and socio- economic surveys were carried out. The community, government and consultants participated in the workshops. One of the outcomes of the workshops was the need to concentrate on economic issues. Accordingly, the upgrading philosophy was built upon economic issues and promoting an area development plan that includes income generation — in particular home based enterprises. Planning considered the importance of the proximity of the commercial units from the homes of the residents, particularly for the women. Lack of experience working with funding sources was identified as a major problem. A clear consensus was expressed on the need to create suitable home work space, and industrial areas outside Telal Zeinhoum that are unsuitable as HBEs or in the community proper. Another aspect of the plan involves increasing the number of commercial shops and workshops to create jobs for youth. Participatory approaches were used throughout the process to secure agreement on all proposals. An NGO will be created that will be the government partner in the project. It will manage a community micro finance scheme for income generation activities and home improvement in upgrading areas. [El-Sheikk: 2000]
- 66. 4.4 Selective Greeningin Support of SSE Activity The notion of managing cities as ecosystems is gaining ground. The urban ecosystem model seeks a better balance between the natural environment and built-up spaces in urban centres. [Stren: 1994] Although an ecosystems approach may not be the optimum way to address SSE environmental problems, it is possible that the selective greening of poorer communities could play an important role in local strategies related to SSEs. There is growing understanding and appreciation about the importance and functionality of green spaces and trees in urban poor communities. Bhatt, reviewing studies of informal settlements in India, found that the "public open spaces in these settlements — ... typically small in scale — are rich and diverse in spatial qualities, lively, full of activities and well integrated with the housing." [Bhatt et al.: 1990, 4] Similarly, a study of the slums of Indore, India, by the CMCH reached the following conclusion: At first glance, landscaping seems an extraneous, if not an irrelevant issue in the context of low income urban shelter. If landscaping is considered a frill in most conventional building projects, it is little wonder that it plays such a minor role in what is mistakenly referred to as basic housing. Perhaps this is why tree-planting programmes are absent from most (housing) projects. However, in existing slums and unplanned settlements, trees are conspicuously maintained, protected and planted by the inhabitants — without official assistance, and with some considerable labour. Trees provide shade, play the role of public buildings, public gathering place, a substitute for porches and covered outdoor spaces, religious space, classroom, and have important aesthetic value. [Rybczynski et al.: 1994, 43] The purpose of selectively greening is to create versatile urban spaces, which can serve a variety of purposes and free up other locations for other uses. This is not to say that trees and grass should substitute for a school room, a religious temple or a community centre. Yet, in the absence of resources and space, greening is possibly one way to accommodate a variety of interests and needs, which may otherwise be neglected as a result of the presence of SSEs in homes and elsewhere. Planting trees, shrubs and grass is not costly. The major investment comes in the time required to ensure that everything is planted in the right place, the right way and for the right reason. As will be discussed in the final chapter, engineered or constructed wetlands and ‘living machine’ processes utilize living plants and irrigation systems to break down chemicals and other pollutants stemming from industrial activity. Urban forestry and urban agriculture can also be encouraged to green and to create economic opportunities for entrepreneurs. Urban agriculture, selected greening, engineered wetlands and living machines, and urban forestry can all become part of a multifaceted approach in reshaping urban spaces to provide more options to accommodate SSEs, while improving the overall environment of a city. 4.5 An Ideal Community Design The design in Figure 4.5.1 is offered as an example of what can be strived for in community design on how to assimilate SSEs. Different housing designs are used to facilitate HBE activity. Common workshops are present to meet the needs of specific industries. Open space is available for street vendors and kiosks and bike lanes, join the different sectors of the community. Houses with store fronts benefit by being located where there is a high volume of pedestrian traffic. Reinventing the City: The Role of Small Scale Enterprise 59
- 67. Reinventing the City:The Role of Small Scale Enterprise 60 Figure 4.5.1 Ideal Community Design
- 68. 4.6 Summary ofKey Points 1. The use of NMVs, like cycle-rickshaws, can play a key role in supporting SSE activity through efficient and cost-effective transport of supplies and finished products. 2. The use of NMVs also alleviates air and noise pollution in urban areas. 3. Greater effort should be made to explore innovations in NMV technology, so that it can be adapted for practical application to urban transport for poor communities. 4. Given the pollution problems associated with their use, greater effort must be made to promote less polluting forms of small motorized vehicle transport. Interesting examples exist of conversion to alternative fuel sources, such as compressed natural gas, solar and electric. 5. To better integrate economic and domestic activity, new housing models should draw upon traditional building practices within cultures, since these are generally guided by both realistic and practical considerations. 6. When exploring options for SSE outside the home, accessibility to consumers, suppliers and transportation are key considerations. 7. The shape, size and design of streets, other public thoroughfares, markets and, indeed, entire communities could be reconfigured to facilitate SSE activity and improve environmental standards. 8. Selective greening of poorer communities helps create versatile urban spaces that can serve a variety of purposes (e.g., as meeting places). Moreover, planting trees, grass or shrubs are not costly activities. 9. Urban forestry and urban agriculture both improve the local environment and may create economic opportunities for entrepreneurs. 10. Engineered wetlands and ‘living machines’ also have a place in reshaping urban spaces to better accommodate SSEs and environmental concerns. Reinventing the City: The Role of Small Scale Enterprise 61
- 70. Reinventing the City:The Role of Small Scale Enterprise 63 5.0 Introduction Chapters Three and Four presented an assortment of ideas and suggestions on how to work with people, governments and communities, and the order, spatial arrangements and physical characteristics of the communities in which SSEs flourish. This chapter looks more closely at the inner operations of SSEs, in particular manufacturing SSEs, to see where environmental improvements can be made. Energy, technology, science and workplace design are all aspects of the internal operations of SSEs where changes are possible. The chapter begins with a section on OHS practices for SSEs. OHS practices are a concrete example of how to improve the workplace from a health, environmental and economic standpoint, without incurring significant expense or necessitating great scientific or technical support. 5.1 Occupational Health and Safety Standards for SSEs The disturbing part about the absence of OHS standards in the SSE sector is that pilot projects have demonstrated that cost effective interventions can lead to significant improvements in the safety of the workplace, while at the same time improving production. Moreover, smaller enterprises appear to be more conducive to improving productivity by means of better working conditions: Small enterprises differ from larger firms in that productivity in small enterprises is usually low and responsive to improvements. Further, in small enterprises, praise is taken personally, there is only one decision-maker who is action orientated, and the owner has at least a paternalistic interest in workers. Changes can thus be introduced rapidly, and small scale interventions can have a major impact. [Di Martino: 1995, 2-3] In the end, improved OHS practices may be where the critical breakthroughs will be made to improve overall SSE environmental standards. Improved OHS standards may mean a simple redesign in equipment, the recon- ceptualization of floor space, the introduction of protective gear, or appropriate disposal bins and containers. Such changes are simple to make but need to be thought out, as the smallest gesture towards improvement can backfire. For example, SSE workers have been known to routinely refuse to wear protective masks and gloves for reasons of comfort. [Pallen: 1997a] It is also important that OHS schemes aim to improve the financial bottom line of SSEs. Given the fragile financial status of SSEs, increased profit will always be a key motivation for entrepreneurs. This is not to say there are not other motivating factors. OHS activities aimed at ensuring the safety of children and other family members from workplace hazards is another selling point. In the end, simple principles related to being practical, participatory, cost-effective, profit enhancing and productivity raising will appeal to SSEs. Boxes 5.1, 5.2, 5.3 and 5.4 present four different perspectives on making OHS improvements in SSE workplaces. Through the case studies, one sees how local governments, donor organizations, NGOs (both local and international), entrepreneurs and their associations, and even large enterprise could all play a leadership role. Chapter Five Improving the Environmental Performance of SSEs
- 71. Reinventing the City:The Role of Small Scale Enterprise 64 Box 5.1 ILO WISE in South America The ILO has developed an approach to the improvement of working conditions and productivity in small enterprises with a training method called WISE (Work Improvements in Small Enterprises). The WISE approach was deemed necessary, as traditional inspection-based methods for protecting workers are often inadequate for small enterprises. The training methodology of WISE includes these basic principles: 1. Build on local practices. 2. Focus on achievements. 3. Link work conditions with other management goals. 4. Use learning by doing. 5. Encourage exchange of experience. 6. Promote workers’ involvement. The technical content of each programme is: Materials, storage and handling: Racks, carts and other low cost improvements help recover misused space, lower capital costs, eliminate unnecessary operations, and upgrade work space appearance. Workstation design: Tools and materials placed within easy reach, good use of jigs and fixtures, and avoiding work in strained postures, resulting in higher productivity and better quality products. Productive machine safety: Use of feeding and ejecting devices, and redesign of machine guards to increase productivity and eliminate hazards. Control of hazardous substances: Dust fumes and other contaminants interfere with efficient operations, damage machines and products, and are harmful to workers’ health. Through simple and inexpensive means, problems can be reduced and wasting of valuable chemicals can be stopped. Lighting: There are many low cost ways to improve lighting conditions by making better use of natural local light. Welfare facilities and services: Welfare facilities are critical for improvement of workers’ health, morale, motivation, job satisfaction and attendance. Work premises: Most small enterprises are located in buildings which were not designed for their current use. There are always ways to enhance productivity by improving the work environment. Work organization: Modern techniques, such as task combination, multi-skilling, a group workstation or product-orientated organization, can be the key to improving workers’ motivation and work efficiency. Work involvement: The training programmes provide entrepreneurs with an opportunity to learn the value of making better use of their workers’ skills, abilities and ideas. In the 1992-93 period, 136 enterprises from South America participated in WISE training workshops. Actions plans identified 1,042 workplace improvements to be implemented. Within a short period after the workshops, 623 of the improvements were implemented, another 135 were in progress, 233 still planned, and another 51 were dropped. [Di Martino: 1995, 1-4]
- 72. Reinventing the City:The Role of Small Scale Enterprise 65 Box 5.2 ILO — Promoting Productivity and Social Protection in the Urban Informal Sector, Dar es Salaam As part of an ILO project, 11 informal sector clusters in two districts in Dar es Salaam were included in a study on OHS practices. The prevalent problems found in the clusters included: exposure to occupational hazards, poor welfare facilities, lack of occupational health services and protective equipment, use of unsafe equipment/tools, poor workstation design, housekeeping and material storage, poor personal protective devices and work organization, as well as a lack of communication channels with the authorities. The micro enterprises included in the study were: • basic metalwork including metal products fabrication; • timber and woodworking; • tailoring and shoe making; • market products retail business; • mechanical and electrical workshops; • arts and crafts, including carving, basket and carpet making; • cooking and vending food, including fruits and vegetables; • flour milling; • vegetable growing; • yarn dyeing; • repair of plastic containers; • fishing, fish processing and selling; • used tire engraving and selling; • stone crushing. Short-term pilot intervention programmes were initiated to improve working conditions and to provide OHS services to the clusters. Cluster operators were trained in first aid, and health care workers were trained to undertake health promotion activities in the clusters. Safety and health committees were created and their members were trained in basic OHS. City council resumed sanitary services in the clusters. Other inputs included provision of first aid kits and drinking water facilities. Results of the Pilot Intervention 1. Eleven informal sector operators from 10 clusters have been trained in first aid, and 28 health care workers (10 nurses, 10 clinical officers and 8 medical officers) in occupational health services. 2. First aid services in nine of the clusters had been established. Health care workers visited the clusters to check the health of the operators and have been given health education in various occupational health topics. 3. A total of 61 operators — members of the Safety and Health Committees from eight trades — were trained. 4. Some practical improvements have been carried out in four clusters, including: • daily sweeping/cleaning of work sites; • arrangements of materials; • wearing of clean clothes/uniforms: and, • daily collection of waste to a central collection point. 5. Five other clusters have started mobilizing funds for maintaining toilets. 6. Waste disposal by the city council has improved in one cluster, while a private contractor has been hired by another to remove and dispose of waste. 7. City council sanitary services to the clusters have generally improved, due in large part to better communication. [Forastieri et al.: 1996]
- 73. Reinventing the City:The Role of Small Scale Enterprise 66 Box 5.3 CIDA Awareness Raising for Environmentally Sound Practices in Recycling of Used Batteries in Dhaka, Bangladesh Since the early 1960s, the recycling of old batteries has grown as an income generating activity in the slums of major cities in Bangladesh. In a typical battery recycling operation, dismantling includes opening the battery casing, taking out the lead-oxide plates and separators, and draining the sulphuric acid. The batteries are then rebuilt using new leads, plates and separators, and sulphuric acid. Environmental impacts are soil and water pollution from drainage of used sulphuric acid. Initial investigations revealed significant environmental and health risks with present battery recycling practices. For this reason, CIDA and the Integrated Health and Development Centre in Dhaka decided to launch a pilot project with the following broad objectives: • to further analyze battery recycling activity and its associated risks; • to raise awareness among the different actors, including the enforcement and policy making agencies, about the occupational hazards of battery recycling activities and relevant policy formulation. • to demonstrate mitigation measures to carry out recycling activities in environmentally and OHS sound ways. The project calls for collecting information on key issues and the views of workers, specifically women, adolescent girls and children. Chemical analysis of the blood samples will be done under the project with respect to indicators on health and relative environmental hazardous/toxic levels. Three hundred workers from two study areas in Dhaka will be involved in the study. The Bangladesh Used Battery Breakers Association is expected to be involved in a subsequent awareness campaign. Twenty-three day awareness raising sessions for 300 workers will be conducted. [CIDA: 1997 and Child: 1998] Box 5.4 The Brassware Workers of Aligrah, India Aligarh is a small town situated around 180 kilometres south of New Delhi in the state of Uttar Pradesh. The brassware industry is the dominant feature of the local economy. Much of the brassware industry is home based, involved in the production process in the casting, filing, grinding and polishing stages. OHS standards are non-existent, with workers operating in close proximity to fire furnaces, handling molten metal and scorching hot casted products. Casting is also a polluting activity where acidic washing of materials is commonplace. Nevertheless, workers rarely wear protective clothing or shoes. Children can be found playing around the furnace and sometimes helping with secondary tasks. The risk of accidents is very high. There are other OHS standard issues related to cramped, filthy, cluttered and poorly ventilated conditions. The work is done on a contractual basis with large local companies, who take no responsibility for the workers’ and family safety. International Resources for Fairer Trade (IRFT) is a Bombay-based development agency dedicated to fair trade, and a partner of the UK-based charity,Traidcraft. IRFT, working with Prashant Enterprises which is one of the large companies contracting home based brassware workers in the area, developed a medical benefits and health and safety equipment programme for workers. However, the OHS activities were met with indifference on the part of workers, who refused to wear protective equipment. This led Prashant Enterprises and IRFT to decide to experiment, by providing a casting facility with a 50-furnace capacity and a requirement that all Prashant contract casters use the casting house to work. The casting house is well ventilated, well illuminated and has sufficient space between furnaces. Children are not allowed into the facility. Casters could choose to work at any time they pleased, and protective clothing is provided and inspected.Today 10 furnaces are operational and long-term international contracts have been won with foreign companies, largely a result of the improvements made in OHS standards. [Singh and Kowale: 2000]
- 74. Reinventing the City:The Role of Small Scale Enterprise 67 5.2 From Waste to Green Pastures Recent pilot projects and research demonstrate that SSEs could be even more creative with the waste and pollution created by SSEs and other enterprises. A key weapon could be the use of natural systems that break down toxic and pollutant elements. ‘Engineered wetlands’ and the aptly named ‘living machine technologies’ are designed to utilize living plants to complete the chemical conversion of waste to inoffensive matter. In Asia, there is considerable experience with engineered wetlands [see Pallen: 1997a, 47]. Engineered wetlands are used to break down sewage that is then channelled into fish farming systems. Throughout Asia, in cities such as Calcutta, the reuse of human waste in fish farming systems dates back centuries. [Edwards: 1992] There are a wide variety of models in operation, in both urban and peri- urban areas. In addition to their aesthetic appeal and fish farming potential, the cost of constructing engineered wetlands for sanitation purposes is in general 25% to 40% cheaper than a standard sanitation system providing comparable performance. [Weil: 1998] It is always surprising what can be achieved by using the inherent capacities of nature. Pioneer work related to how plants and flowers can render heavy metals and pollutants inoffensive is very promising. Research in support of this publication identified over a hundred different uses for engineered wetlands for treating industrial, human and agricultural waste and pollutants. That costly infrastructure or technology can be avoided in favour of approaches which introduce natural systems into the urban and peri-urban landscape is very encouraging. However, more research and experimentation is required related to how industrial waste and pollution can be treated by natural systems. The example of the Monfort Boys School Project [see box 5.5] demonstrates how source pollution can be eliminated, while creating employment through new micro enterprises and contributing to sustainable agricultural production. Figure 5.2 is another example of what could be possible if a litle imagination is used. In Figure 5.2, an engineered wetland is established to treat the pollution of a polluting SSE cluster. The enterprises are located around the central body of water where the wastewater is discharged. From there the wastewater moves through a serie of stages where different water based plants are used to neutralize toxic elements such as mercury, chronium and arsenic. At each stage, the polutants become less toxic. Finally, the water enters the river unpolluted. The area surrounding the engineered wasteland is highly urbanized. 5.3 Clustering and Common Facilities As mentioned earlier in this document, the clustering of enterprises working in the same or related sectors is a highly common phenomenon. Improved goods and services, specialized labour, and the availability of raw materials, are some of the economic advantages of clustering. Furthermore, within the scope of these economic benefits lies an opportunity to promote greater environmental efficiency. [Werna: 1997, 397] For example: • Waste treatment facilities can be introduced on an appropriate scale to reduce pollution. This includes novel approaches, such as engineered wetlands to target a particular pollutant or industry. • Enterprises and suppliers providing environmental goods and services can locate close to the clusters. • Through clustering, there is also the possibility of establishing more appropriate training programmes and OHS resources through such acts as reinforcing local health services. Dues can be payed by the clustering enterprises to ensure services. • Educational awareness and outreach campaigns on OHS and environmental issues can target clusters.
- 75. Reinventing the City:The Role of Small Scale Enterprise 68 Figure 5.2 Using engineered wetlands employing a multi-stage approach to treat the pollution of an SSE cluster.
- 76. Reinventing the City:The Role of Small Scale Enterprise 69 Box 5.5 The Monfort School Project: Beer — A New Source of Small Enterprise Development In a promising agricultural experiment, a boy's school is linking five different micro enterprises so that the waste from each becomes a key input to another. The sludge of a large Fijian brewery is the source of pollution from which five new enterprises would be established. What was a troublesome pollutant would be turned into crops of fresh mushrooms, chickens, fish and vegetables, and fuel for electric power. Working with the Monfort Boys School for orphaned and disadvantaged boys, the United Nations University developed this project, which can be described in six stages: Stage 1: At the brewery, the waste from the brewer's spent grain is collected. The waste grain had been destroying local marine life. It is now recuperated and used as a fertilizer for mushrooms. The brewer's grain is, of course, free. Stage 2: Mushroom Growing —Three kinds of mushroom have been selected to grow due to their high market value. Residue from mushroom fertilizer is then used to feed chickens, as part of the second micro enterprise. The mushroom waste is both nutritious and safe for the animals, and makes an excellent feed. Stage 3: Chicken Raising — Animal waste is collected and put into a decomposer for separation. Inside the decomposer, the chemicals in the wastes will separate the constituents into either energy or fertilizer production. Stage 4: Methane Gas Production — Methane is produced from the chicken waste, and is collected and bottled to operate the school generator. About three gallons of gasoline a day will be produced, an appropriate amount to service the school. Later, a pipeline will be built to carry the gas to the school buildings. Solid matter is processed into fish food. Stage 5: Fish Ponds — Meanwhile the solid matter that is left after the gas is bled off will move in a solution of water through several compartments of a digester, at each stage losing some of its bacteria and some of its potential for spreading illness. When it emerges from the last compartment, this decontaminated manure will be neatly converted into the same ‘NPK’ nutrients — nitrogen, phosphorus and potash. With the help of gravity, it will then flow through three cleansing ponds, where bacteria, plankton and other micro scavengers will consume any residual, unwanted parts of original animal wastes. What emerges in the fish pond is a perfect fish food. Nutrients in fish water will be used for growing hydroponic vegetables on top of the pond, reducing the quantity of muck left for disposal. Stage 6: Vegetables are harvested for consumption or market, leaving little or no waste at the farm. On top of the pond, more food will be grown hydroponically. Flowers, strawberries and high value vegetables, such as golden needle, will be grown floating on the water, so that their roots can draw nutrients from the dissolved fish waste. [Kane: 1997]
- 77. Reinventing the City:The Role of Small Scale Enterprise 70 Box 5.6 below, illustrating the rattan industry of Indonesia, is a good example of how economic and environmental objectives can be met through clustering. Box 5.9, later in this chapter, describes a new initiative by CIDA to provide brickmaking clusters in Egypt with a cleaner burning natural gas energy. In India, common treatment facilities are at various stages of installation to support clusters of small scale industry, from tanneries in Madras to textile dyeing inThirupur [see Box 5.7]. The India Ministry of Environment and Forest has experience in creating common treatment facilities for clusters, and considers it an important part of overall planning for infrastructure and services for clusters, which is presently very weak. [MSG Environmental Services: 1999] The Government of Indonesia has actively pursued policies to cluster same-sector enterprises by providing shared services. While the clustering of industries may have environmental and economical advantages, Chapter Two discussed how the risk of serious negative environmental damage is much higher. In other words, all the pollution and risk factors can be concentrated in a small area with no proper controls in place. Problems such as air emissions, discharges of effluent, storage and disposal of wastes, industrial accidents, spills and nuisances such as noise could be further exaggerated. 5.4 A New Look at Technology It has been over 25 years since E.F. Schumacher wrote Small is Beautiful, which promotes among other ideas the notion that technology should and can be developed to create more meaningful employment for people while not causing environmental damage. [Schumacher: 1974] The conditions under which the vast majority of urban SSEs operate could not be any further removed from the idyllic world envisaged by Schumacher. Yet, considerable latitude exists to develop and promote technologies to reduce environmental risks and improve the working conditions of small scale entrepreneurial activity, which would bring this world more in line with Schumacher’s vision. The example in Box 5.8 of the Medleri Charkha, a foot-operated, self-winding spinning wheel, is a modest demonstration of how technological change can have a positive impact on production, working conditions and environmental well-being through incremental improvements in technology capacity. Box 5.6 Small Scale Production in the Rattan Industry in Tegalwangi, Indonesia The historical concentration of rattan firms aroundTegalwangi has been the result of numerous initiatives by regional government to encourage the creation of enterprise clusters. Clustering is a precondition for government assistance. InTegalwangi, clustering has meant that raw materials are more readily available to small producers. Rattan is brought in from the distant islands of Kalimantan and Sumatra. Prices charged by local traders are higher than those imposed by outside merchants, but credit concessions make them accessible to producers with little capital. For small scale producers, proximity to each other also means the possibility of utilizing more advanced machinery. For instance, one very small producer is able to produce semi-finished goods for a large exporter, thanks to his access to a steamer (to bend the larger rattan canes into frames) owned by a neighbour. Physical proximity also facilitates transportation. Small producers make use of traditional means of transport, such as bicycles, hand carts and cycle-rickshaws, to carry materials, parts and finished goods which could not be employed if distances were greater. The flow of information concerning demand, prices and levels of wages is also facilitated by the concentration of small firms. As well, skill transmission is an integral part of family and neighbours' daily exchanges, and it is made easier by proximity. The importance of this informal training receives recognition through the higher wages paid to workers originating from the village. [Smyth: 1992, 53]
- 78. Reinventing the City:The Role of Small Scale Enterprise 71 Box 5.7 Common Effluent Treatment Plants Initiative In India, the Ministry of Environment and Forest has developed a scheme for setting up common effluent treatment plants for small scale industries regrouped in clusters. Financial assistance is provided to industrial associations, in the form of subsidies (i.e., 25% of project costs from central and state governments) and loans (i.e., 30% of project costs at reduced rates of interest from the Industrial Bank of India). The participating industries are expected to contribute the remaining 20% of the project costs. [MSG Environmental Services: 1999] Box 5.8 The Medleri Charkha: A Foot-Operated, Self-Winding Spinning Wheel to Recycle Waste Silk In 1983/84, IDS (India Development Service) approached theTOOL Foundation (Transfer ofTechnology for Development) with the request to assist in the development of appropriate pre-weaving technologies. The traditional technology was ergonomically difficult to handle, and productivity and quality were rather low. TOOL assigned a technician to work on improving existing technologies. In 1986, the Medleri Wool Charkha, a foot-operated, self-winding spinning wheel, was developed in close co-operation with spinners from Medleri village. After various prototypes, the final design was put into production by Phoenix Products. TOOL started the adaptation of this spinning wheel for the spinning of silk waste. This adaptation was successful, and Phoenix Products has started the production of the Medleri Silk Charkha as well.TOOL assisted Phoenix in the production and the setting of quality standards. IDS and TOOL developed a training programme for spinners and trainers for the introduction of the Medleri Wool Charkha. Maintenance centres were established, with staff receiving technical training in maintenance and repairs. Requests for this new technology are coming from organizations throughout Asia, who are expressing interest in the Medleri Charkha for spinning silk- waste, cotton and wool. Features of the Medleri Charkha: • metal design — more durable than wood, and in India also cheaper; • foot-operated, with self winding mechanism; • winding speed regulated by adjustable brake mechanism; • possibility to mount either a low speed or high speed spinning mechanism; • easy adjustment of driving belt tension; • produces strong, even yarn for better, longer lasting products; • most spinners with a Medleri Charkha spend less time on spinning the same quantity of wool yarn, as spinners who use traditional technology; • will spin any quality of wool; • made from locally available parts; • easy to maintain. [TOOL: 1997]
- 79. Reinventing the City:The Role of Small Scale Enterprise 72 Most technological investment in developing countries is in support of large scale industry, despite the fact that technology employed by SSEs generates much higher levels of employment. [Stewart: 1989] It would be much easier for countries such as Canada to provide suitable technologies, if SSEs in Canada already employed the same technologies. Since this is not the case, NGOs, donor groups and government departments must be encouraged to place a greater emphasis on technology development, given there is now a much better set of development skills — in areas such as participation and financing — to make sure the technologies achieve their social, economic and environmental objectives. Large and medium size enterprises (LMEs) in developing countries with the resources for product development should be encouraged to work with the SSE sector to develop new technologies. LMEs are well placed for understanding how the SSE sector operates, and how opportunities can be exploited. What company would not want to develop inventions, like the handloom wheel outlined in Box 5.8, given the potential market? It is also important that existing technologies be promoted. In India, Dasgupta reports that some SSEs are not aware of, nor are interested in, some of the low cost options which are presently available. For example, small scale metal finishing and electroplating enterprises can considerably reduce ground contamination by toxic effluent, by using cheaper alternatives to the drag system presently employed. [Dasgupta: 1998] In Chile in 1992, a fair was held, bringing together 110 technologies invented or used by the informal sector that were deemed to have positive benefits for the environment. [Bengstsson: 1995] There are many generalizations regarding the limited ability of the SSE sector to work with and develop new technology. Until this is proven to be the case in a given city, settlement or sector, technological solutions should not be discounted. 5.5 Energy A coming explosion in the potential of non-polluting renewable energy has been predicted. Competitive (re price), clean and adaptable energy sources have been envisaged for home, transportation and industrial applications. Over the last ten years, only incremental progress in technological capacity and price have been made in the renewable energy field. However, the boom is coming. Increasingly, national governments, business, utility companies and non-governmental organizations are making greater investments into understanding how renewable energy can be used. Large multinational energy and automobile companies are banking on renewable energy, directly promoting its use in the developing world. [Hook: 1999, 1] There is no reason why, one day, developments in renewable energy in industrial countries will not lead to accessible and practical applications in developing countries. From the urban and peri-urban SSE standpoint, renewable energy can already be competitive where dependable grid energy is not available. Renewable energy is already outperforming certain types of energy sources, such as kerosene lamps, candlelight and batteries in rural areas. [World Bank: 1996] As the World Bank points out, solar energy can offer higher quality light, improved safety levels, cleaner indoor air and greater reliability, than other energy sources. [1996, 14] To date, considerable experience has been gained in rural areas and mountainous zones in promoting small scale applications of renewable energy. This includes wind, solar and biomass. Already there are a wide variety of renewable rural energy projects supporting rural enterprise. Enersol and the Solar Electric Light Fund are two international NGOs that have considerable experience promoting solar energy in support of small enterprise. Peri-urban areas are a likely point of entry for renewable energy, where hooking up to the grid can be expensive and power interruptions are common. In Burkina Faso, solar water pumps have been successfully installed in a peri- urban zone of Ouagadougou. Solar water pumps are more expensive and technically harder to install and maintain than simple solar panels to produce electricity. [Tounkara and Schiller: 1998] In a recent study in India, SSEs claim their greatest preoccupations regarding energy are shortages and blackouts, and the high cost being paid for supply. [MSG Environmental Services: 1999] If renewable energy can deliver, in terms of cost and reliability, then there is no reason why it cannot be competitive with unreliable grids, unsafe kerosene lamps, candlelight, batteries and diesel motors. Although far away, one day renewable energy capacity will be more in line with what our imagination would like it to
- 80. Reinventing the City:The Role of Small Scale Enterprise 73 be. In the meantime, there is a lot of room to work with existing energy technology to improve efficiency, and reduce pollution and costs. In India, clay brickmaking, glass making, steel re-rolling and foundries are all sectors of SSE activity suffering from energy inefficiencies. [MSG Environmental Services: 1999] In these industries and others, energy efficiency improvements can be made. In an important recent development, CIDA, in collaboration with the Government of Egypt, announced a project to provide brickmakers in Egypt access to natural gas — a much cleaner alternative to the present energy source [see Box 5.6]. As countries like Egypt, Pakistan and Bangladesh continue to develop their natural gas capacity, there will be more opportunities to benefit from the expertise of natural gas producing countries, such as Canada, to serve small industries such as brickmakers. 5.6 Appropriate Environmental Management Practices In industrialized countries, a wide array of environmental management practices are being developed in relation to industry. Environmental audits, environmental assessment practices, workplace redesign, monitoring measures, inspection standards and new forms of legislation are at the forefront of finding new ways to better harmonize the needs of the environment with industry. As most of these tools are intended for larger, often mechanized, enterprises that have the time and resources to make the necessary investment, these may offer little of value to SSEs. Moreover, in industrial countries, there are often government agencies present to provide direction, financial assistance and training, in addition to the tools. Some larger size SSEs, which are more economically solvent, could make use of some of these environmental management tools, but in most cases there would not be a natural fit. In this respect, it is important to keep in mind that although enterprises may produce the same form of pollution, the solutions for each enterprise must consider their particular size and local circumstances. [Dasgupta: 1997, 294] Box 5.9 Cleaner Energy for Brickmaking Clusters in Egypt There are approximately 2,000 small scale brick factories in Egypt, clustered in urban and semi urban areas, and operating on an inefficient and dirty combustion fuel known as mazout (a heavy residual oil). Mazout is the prime energy source for brick furnaces operating 24 hours a day. Brickmaking is very labour intensive, with each factory employing 100 to 150 people — between 200,000 to 300,000 workers in all. In addition to high sulphur oxides, carbon monoxide and hydrocarbon emissions, Mazout fuel creates highly unsafe conditions for workers and their families. Health problems range from eye irritation and nose bleeds, to lung cancer and cardiac difficulties. The Egyptian Ministry of State for Environmental Affairs identified small scale brickmaking as a priority for introducing significant technology improvements to reduce pollution. Egypt is actively establishing the necessary national infrastructure to facilitate the widespread use of natural gas. This includes supplying service stations, and providing small scale industry access to natural gas. Responding to a request made by the Giza Union of Brickmaking Factory Owners, a pilot project has been approved to use growing Canadian private sector capacity in the field of natural gas conversion technologies to convert brickmaking over to natural gas. Two brickmaking clusters have been targeted. The project will be managed through CIDA's Egypt Environmental Initiatives Fund (EEIF), which assists small and medium enterprises to improve their environmental management capacity. The Egyptian government has agreed to build and cover the cost of the natural gas network into the cluster areas. Innovative financing for environmental improvements, developed by the EEIF, Egyptian banks and the Government of Egypt, will be used to cover other costs. It has been estimated that the Canadian technology could lead to a 75% reduction in greenhouse gas emissions, with even greater reductions in other pollutants.
- 81. Reinventing the City:The Role of Small Scale Enterprise 74 Environmental assessment (EA) — the practice of evaluating and anticipating the environmental impact of a project, and identifying appropriate mitigation measures — is probably the best example of an environmental management tool that in principal should be of use to all enterprises regardless of their size, location, productive inputs and equipment. Yet EA is still searching for its place as an environmental management tool in developing countries. CIDA is one development agency that is putting considerable resources into finding ways to make EA a more practical and appropriate development tool [see Pallen: 1996]. EA and other environmental management practices have the potential to be useful, as long as an effort is made to modify them to the scale and circumstances of the enterprise. 5.7 Eco-Industrial Parks One approach found in industrial countries that could adapt nicely to urban and peri-urban areas in developing countries is the eco-industrial park (EIP) concept: There is a movement in industrial countries to a new kind of industrial development that uses resources dramatically more effectively and refines the manufacturing economy. Current trends in sustainable development and business management are converging on a new model of industrial operation exemplified by the discussion of eco-industrial parks ... Eco-Industrial Parks (EIP) strive simultaneously to increase business success while reducing pollution and waste. Rooted in the emerging discipline of industrial ecology, an EIP mirrors natural systems. [Cohen-Rosenthal et al.: 1999, 1] Lowe and Warren add: An eco-industrial park is a community of manufacturing and service businesses seeking enhanced environmental and economic performance through collaboration in managing environmental and resources issues including energy, water, and materials. By working together, the community of businesses seeks a collective benefit that is greater than the sum of the individual benefits each company would realize if it optimized its individual performance only ... the goal of an EIP is to improve economic performance of the participating companies while minimizing their environmental impact. [Lowe and Warren: 1996, 7-8] Cohen-Rosenthal point out that it is not uncommon for "two companies and or even more to develop mutually advantageous relationships where the waste products of one company form a valued input product for another." [Cohen-Rosenthal et al.: 1999, 1] There are close to 20 EIPs in North America. The interesting aspect of EIPs is the tendency to use a wide variety of approaches to customize the EIP to a location: (EIPs) draw on different perspectives and disciplines to help formulate their ideas. All use an industrial ecology framework to help inform their development. Some draw heavily on urban and land use planning that has been used in economic development and recruiting. Others are more engineering driven seeing the possibilities of creating pipe to pipe interconnections. This perspective recognizes new technological possibilities especially in the development of connecting technologies that support regional industrial recycling. [Cohen-Rosenthal et al.: 1999, 1] Already in developing countries one observes, through informal recycling and waste management, a starting point for understanding how the concept of the eco-industrial park might take shape. However, to make the EIP concept more relevant implies going beyond present practices to see the potential of recycling, waste management and waste exchange on another level. The way to make the EIP concept work would be to not limit the concept to small enterprise, but to include all types of industry. This will create more options. There could be further niche opportunities for enterprise creation for SSEs providing repair and rental services, as remanufacturers and recyclers, as well as sellers of used materials and equipment. An interesting starting point could be in peri-urban zones where there is a mixture of industrial and agricultural activities, and solid and liquid waste management services are often poor or non- existent. 5.8 New Environmental Enterprises The premise of this document has been finding ways to reduce negative environmental impacts. Yet, another course of action would be to stimulate the creation of urban SSEs that could provide goods and services which
- 82. Reinventing the City:The Role of Small Scale Enterprise 75 address environmental problems. The Monfort school project in Box 5.5 is a good example of furthering opportunities in the recycling and waste management field. Renewable energy is certainly another field with potential. Groups, such as Enersol, have worked with micro entrepreneurs to establish businesses that provide solar energy repair and maintenance services to homes and businesses. As the importance of urban agriculture grows, there would appear to be business opportunities through the sale of such items as hydroponic equipment. There would also seem to be opportunities in providing community-level water and sanitation services. Although most of the models discussed point towards community control, there should be room for enterprises, in much the same way there are opportunities in the transportation and housing sectors. In countries such as Canada, it is not unheard of for companies that pollute to develop their own technological capacity to deal with the problem. What they often find is that they have also developed a very marketable product. There is no reason why SSEs could not create their own market opportunities, based on their own inventions. It is important to identify where opportunities exist.
- 83. Reinventing the City:The Role of Small Scale Enterprise 76 5.9 Summary of Key Points 1. Occupational Health and Safety (OHS) practices are a cost-effective way of improving the workplace from a health, environmental and economic standpoint. 2. Improved OHS standards will improve overall SSE environmental standards through fairly straightforward inputs like redesigning work space and basic equipment. 3. Improved OHS practices can increase the profitability of SSEs. 4. Improved OHS practices can help ensure the safety of children and other family members. 5. Local government, donors, NGOs, entrepreneurial associations and larger enterprises all have a potential leadership role to play in encouraging improvements in OHS standards in SSEs. 6. Engineered wetlands and ‘living machine technologies’ have an important role to play in treating industrial, human and agricultural waste and pollutants in urban and peri-urban areas. These natural systems could provide SSEs with a cost-effective weapon for managing waste. 7. More research and experimentation is required on how industrial waste and pollution can be treated by natural systems. 8. Clustering of enterprises offers clear economic advantages in terms of improved goods and services, specialized labour and availability of raw materials. 9. Clustering also offers potential to promote greater environmental efficiency — e.g., common waste treatment facilities and OHS outreach campaigns. 10. Clustering does have the potential of increasing negative environmental impacts if no controls are in place, given that pollution and other risk factors become concentrated in one area. 11. More technological investment in developing countries should be directed to the SSE sector, given the number of people it employs. 12. LMEs, with resources for product development, are well placed to support the SSE sector to develop new technologies. It could be a mutually beneficial arrangement. 13. Renewable energy sources have an important role to play in supporting SSEs in urban and peri-urban areas in developing countries. Renewable energy, like solar, wind and biomass, can be more competitive in areas where dependable grid energy is not available. 14. Environmental assessment (EA) is probably the most adaptable environmental management tool. EA has the potential to be useful to the SSE sector, since in principle it can be applied to any enterprise regardless of its size, location, productive inputs and equipment. However, more work is needed to make EA a practical and appropriate development tool for SSEs. 15. The eco-industrial park (EIP) concept looks to increase business success while reducing pollution and waste. To successfully implement the EIP concept in developing countries would require an approach that includes all types of industry, not just SSEs. 16. SSEs have a role to play in developing their own technological solutions to local environmental problems — solutions that have the potential to be marketable.
- 84. Reinventing the City:The Role of Small Scale Enterprise 77 6.0 In Summary This document has highlighted the importance and possibility of finding opportunities within the SSE sector to be creative in often problematic circumstances. The perspective may be judged overly optimistic in its believe in more extensive and better environmental planning in relation to small scale enterprise. However, considerable effort has been made in this publication to present insight from related fields of activity, pilot projects and, sometimes, simple ‘antidotal’ information to justify the optimism that substantive change is possible. Change is already occurring in terms of how small scale urban enterprise is viewed and related planning considerations. There is, in fact, an incredible range of possibilities for assisting SSEs, illustrated by what is occurring in diverse locations across the globe. However, the actual level of activity is comparatively small and localized, in relation to the larger picture. One interesting aspect of these seemingly isolated occurrences is that they are embracing similar principles of sound development, such as participatory development and innovative financial schemes, while encouraging considerable cross disciplinary pollination. In the future, greater integration of disciplines — e.g., micro finance professionals working with architects and entrepreneurs; informal trade associations working with energy specialists; and, local governments partnering with SSE entrepreneurs and community groups — will create new prospects for change. It is hoped that this document serves as a starting point in rethinking how urban SSE activity in developing countries is viewed — especially in terms of some of the dynamics emerging in cities throughout the developing world. The evolving relationships between urban and rural zones, and the promise of a more pronounced role of local government institutions being the most important fundamental changes in this respect. Technological advancements in a broad range of fields offer another impetus for rethinking long-standing approaches to development. The timing is certainly right to examine the world of urban SSEs, in terms of the how, why and where of creating jobs and enhancing the workplace. This document has outlined a range of inherent advantages found within the SSE sector — e.g., the practice of clustering, the resourcefulness, and tendencies towards innovation, improvisation and imitation — that can be utilized to propel change. Yet, perhaps the most important factor to keep in mind is that workers and entrepreneurs have the greatest stake in seeing the urban environment improved. The neighbourhoods in which SSEs strive are an interesting study in the use of space and functionality, and SSE activity plays a big part in this equation. The nature in which poorer communities evolve and operate must be understood and exploited for the purpose of improving SSE environmental standards for the betterment of every community. Another aspect of community life, which needs to be accounted for in attempts to improve the environmental standards of SSEs, is the often vast array of social arrangements at the household, street and, sometimes, community level that underpin small scale entrepreneurial activity. What needs to happen over the short to medium term is for development agencies, local governments and NGOs to concentrate on solving problems and promoting change that clearly appeals to entrepreneurs, workers, their families and community. This means tackling real issues identified by the target group. Finally, a broad range of micro initiatives should be launched, related to SSE environmental standards, that will provide development practitioners with greater information and, hopefully, encourage more substantive activity. Chapter Six Conclusion
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