2.5 Living and working in the urban informal economy: Working Out of Poverty
2.5 Living and working in the urban informal economy: Working Out of Poverty
drivers in Manila; garbage collectors in Bogotá; and roadside barbers in Durban
– those who work on the streets or in the open air are the more visible
occupational groups in the informal economy. The streets of cities, towns,
and villages in most developing countries – and in many developed countries
– are lined with barbers, cobblers, garbage collectors, waste recyclers, and
vendors of vegetables, fruit, meat, fish, snack foods, and a myriad of nonperishable
items ranging from locks and keys to soaps and detergents, and
clothing. In many countries, head-loaders, cart pullers, bicycle peddlers,
rickshaw pullers, and camel, bullock, or horse-cart drivers jostle to make
their way down narrow village lanes or through the maze of traffic on city
streets.
Less visible informal workers work in small shops and workshops.
Down the crowded lanes of most cities, towns, or villages are small workshops
that repair bicycles and motorcycles; recycle scrap metal; make furniture
and metal parts; tan leather and stitch shoes; weave, dye, and print cloth;
polish gems; make garments; sort and sell cloth, paper, and metal waste – and
more.
The least visible informal workers, most of them women, sell or produce
goods from their homes: embroiderers; incense-stick rollers; cigarette
rollers; paper bag makers; kite makers; hair band makers; food processors.
Other categories of informal work are casual workers in restaurants and
hotels; subcontracted janitors and security guards; casual or day labourers in
construction and agriculture; and temporary office helpers or off-site data
processors.
The informal economy has been described in a number of ILO reports.
Work in the informal economy is characterized by low levels of skill
and productivity, low or irregular incomes, long working hours, small or undefined
workplaces, unsafe and unhealthy working conditions, and lack of
access to information, markets, finance, training and technology.
Workers in the informal economy are not recognized, registered, regulated
or protected under labour legislation and social protection, often because
their employment status is ambiguous. They are generally not able to exercise or defend their fundamental rights. Facing great difficulties in
organizing themselves, they have little or no collective representation vis-ŕvis
employers or public authorities. Although most at risk and therefore
most in need, workers in the informal economy have little or no social
protection, either from an employer or from the government. Workers in the
informal economy are often excluded from education, skill building, training,
health care and childcare, which are particularly important for women
workers.
Migration to the city does not break family ties. Most low-income
families have a foot in both the rural and urban labour markets. Indeed,
many casual labourers work for part of the year away from home in urban
areas but return for busy periods to farming; if the urban job becomes more
remunerative they may return only occasionally but send back money to support
the family. As national income rises, the share of household budgets
spent on food falls and this, coupled with increased productivity, creates a
long-run structural decline in employment in agriculture.
This shift is leading to rapid growth of urban settlements and the informal
economy, placing considerable economic and social strains on families
and communities in many developing countries.
Discrimination based on
gender, age, ethnicity or disability also means that the most marginalized
groups tend to end up in the informal economy. They are vulnerable to
harassment, including sexual harassment, and other forms of exploitation
and abuse, such as corruption and bribery. One of the basic problems faced
by most workers and small businesses in the informal economy is that they
cannot prove title to their property, which deprives them of access to both
capital and credit.
25 Living and working in the urban informal economy Working Out of Poverty - To learn more about this author, visit International Labour Organization's Website.
Like this article? Share it with your friends
Street vendors in Mexico City; rickshaw pullers in Calcutta; jeepney
drivers in Manila; garbage collectors in Bogotá; and roadside barbers in Durban
– those who work on the streets or in the open air are the more visible
occupational groups in the informal economy. The streets of cities, towns,
and villages in most developing countries – and in many developed countries
– are lined with barbers, cobblers, garbage collectors, waste recyclers, and
vendors of vegetables, fruit, meat, fish, snack foods, and a myriad of nonperishable
items ranging from locks and keys to soaps and detergents, and
clothing. In many countries, head-loaders, cart pullers, bicycle peddlers,
rickshaw pullers, and camel, bullock, or horse-cart drivers jostle to make
their way down narrow village lanes or through the maze of traffic on city
streets.
Less visible informal workers work in small shops and workshops.
Down the crowded lanes of most cities, towns, or villages are small workshops
that repair bicycles and motorcycles; recycle scrap metal; make furniture
and metal parts; tan leather and stitch shoes; weave, dye, and print cloth;
polish gems; make garments; sort and sell cloth, paper, and metal waste – and
more.
The least visible informal workers, most of them women, sell or produce
goods from their homes: embroiderers; incense-stick rollers; cigarette
rollers; paper bag makers; kite makers; hair band makers; food processors.
Other categories of informal work are casual workers in restaurants and
hotels; subcontracted janitors and security guards; casual or day labourers in
construction and agriculture; and temporary office helpers or off-site data
processors.
The informal economy has been described in a number of ILO reports.
Work in the informal economy is characterized by low levels of skill
and productivity, low or irregular incomes, long working hours, small or undefined
workplaces, unsafe and unhealthy working conditions, and lack of
access to information, markets, finance, training and technology.
Workers in the informal economy are not recognized, registered, regulated
or protected under labour legislation and social protection, often because
their employment status is ambiguous. They are generally not able to exercise or defend their fundamental rights. Facing great difficulties in
organizing themselves, they have little or no collective representation vis-ŕvis
employers or public authorities. Although most at risk and therefore
most in need, workers in the informal economy have little or no social
protection, either from an employer or from the government. Workers in the
informal economy are often excluded from education, skill building, training,
health care and childcare, which are particularly important for women
workers.
Migration to the city does not break family ties. Most low-income
families have a foot in both the rural and urban labour markets. Indeed,
many casual labourers work for part of the year away from home in urban
areas but return for busy periods to farming; if the urban job becomes more
remunerative they may return only occasionally but send back money to support
the family. As national income rises, the share of household budgets
spent on food falls and this, coupled with increased productivity, creates a
long-run structural decline in employment in agriculture.
This shift is leading to rapid growth of urban settlements and the informal
economy, placing considerable economic and social strains on families
and communities in many developing countries.
Discrimination based on
gender, age, ethnicity or disability also means that the most marginalized
groups tend to end up in the informal economy. They are vulnerable to
harassment, including sexual harassment, and other forms of exploitation
and abuse, such as corruption and bribery. One of the basic problems faced
by most workers and small businesses in the informal economy is that they
cannot prove title to their property, which deprives them of access to both
capital and credit.
25 Living and working in the urban informal economy Working Out of Poverty - To learn more about this author, visit International Labour Organization's Website.
Like this article? Share it with your friends
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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