Overview | Inclusive Cities

What is the Inclusive Cities Project?

Inclusive Cities aims to improve the livelihoods of the urban working poor, most of whom are employed in the informal economy, many as waste pickers, street vendors, and homebased workers. These workers, while numerous, have very little representation or “voice” in the municipal policy and urban planning processes that significantly impact their everyday lives and their ability to generate enough income to support their families.

Inclusive Cities addresses urban poverty by supporting and building the capacity of membership-based organizations (MBOs) of the working poor in the urban informal economy. Building the capacity of MBOs in the areas of organizing, advocacy, and policy analysis ensures that urban informal workers have the tools necessary to make themselves heard within urban planning processes.

The Inclusive Cities project is based on the shared belief that reducing urban poverty requires reversing the current exclusionary trend of many modernizing cities. This requires fundamental rethinking and reshaping of urban plans, regulations, and policies to incorporate the working poor.

The challenge is to promote Inclusive Cities that embrace the informal economy as a vibrant and key component of the urban economy, and view it as a solution to reducing urban poverty and violence. Inclusive Cities support homebased production through basic infrastructure and appropriate zoning regulations; allow street vendors and hawkers to operate alongside small kiosks and shops as well as large retail shops and malls; and incorporate waste pickers into modern solid waste management systems.

Inclusive Cities require an inclusive, rather than exclusive, approach to urban infrastructure and services; urban spatial planning and zoning; urban regulations and laws; and urban policies. To achieve this, representatives of the working poor must have a voice in urban planning processes.

top

What is the Urban
Informal Economy?

A large percentage of the developing world resides in urban areas and this number is growing. In 2008, more than half of the world’s population – 3.3 billion people – were living in urban areas. According to the United Nations, by 2030, the world’s urban population will be almost 5 billion and the towns and cities of the developing world will make up 81 per cent of urban humanity.

The informal economy plays a vital role in these developing urban economies. Those who are informally employed in urban centres often work as street vendors, waste pickers or homebased workers. Informal workers include non-standard wage workers as well as entrepreneurs and self-employed persons producing legal goods and services, albeit through irregular or unregulated means.

The informal economy is a major provider of employment, goods and services for lower-income groups and it is linked to the formal economy – it produces for, trades with, distributes for and provides services to the formal economy.

Unfortunately, the urban informal workforce faces many issues including: lack of legal and social protection, highly competitive markets, and limited bargaining power with corporate buyers.

Key areas for urban policies include: regulation of public space, framework for legalizing private property, accessing infrastructure and services (roads, transport, export promotion, and basic services such as water and electricity), regulation of commercial transactions and regulation of employment relations.

top

Article

Wastepicker The Rise of the Underground,
Patrick Barta, March 14, 2009

The "informal economy" - which includes everything from rickshaw drivers to maids to drug dealers - is making a big comeback in the developing world. Some observers see the informal economy as a problem – as a barrier to increased productivity and economic growth. Others see it as a solution to poverty reduction and economic growth. Many of those who see it as a problem admit that it serves as a “cushion” during economic crises.

Can it help ease the current global recession? Or is it also affected by the current global recession? Marty Chen of WIEGO, Reema Nanavaty of SEWA, and Jeemol Unni of the Gujarat Institute of Development Studies are cited in a Wall Street article by Patrick Barta.

top