Urban Spaces and the Informal Economy

The informal economy contributes real economic activity to the urban milieu, especially in developing countries. Street vendors, hawkers, artisans, and unregistered small businesses keep cities alive and offer cheap goods and services while maintaining millions in business. In reality, due to their undeniable importance, planning for urban settings often marginalizes or disregards the needs of this sector, treating it as a nuisance rather than an important aspect of city life. This article discusses how architecture and urban planning can integrate the informal economy into the fabric of urban spaces, to expand economic development, inclusivity, and sustainability.

The Understanding of Informal Economy

The informal economy is defined to refer to unregulated and often unregistered economic activities that exist outside any formal state supervision. It has been aptly described as a distinctive feature of cities, especially in rapidly urbanizing regions. Informal workers, such as street hawkers, construction workers, and small-scale artisans, rely heavily on accessible spaces within cities to operate. Markets, sidewalks, and vacant lots vibrate with life, transforming the urban environment into dynamic and adaptable ecosystems. These activities are not just confined within the ambit of economics, but they are social and cultural activities as well. Informal markets foster community interaction while preserving cultural authenticity and spawning micro-economies to support urban neighborhoods. Yet, their legal status is often the grounds for contention regarding land use, encroaching on public space, and clashes with formal urban planning regulations.

Challenges 

As the urban spaces are not planned to generate an informal economy, there are certain challenges faced in the organic growth of informal activities. They are as follows: Spatial congestion occurs as street vendors generally have their stalls or set-up where there is higher footfall during the day like on footpaths and transit hubs. This creates more traffic as a result and can be a cause of accidents at times. There is also a lack of basic facilities such as proper water/drainage systems, electricity, and sanitation due to the set-up being mobile and temporary. As it lacks legal authorization in many places the workers have to face eviction and/ or harassment. These markets are often chaotic, and unorganised and go against the aesthetics of the planned spaces. These poorly maintained spaces lack basic infrastructure and are more prone to health risks. 

Solutions

Informal Economy has the potential to become the driver of urban vitality. Therefore, its integration into urban spaces becomes essential. It can be achieved through numerous ways, such as the Development of such informal markets can be anticipated while designing the urban spaces and the allocation of specific areas can be made for certain functions in a way that the main activity of the urban space is not disturbed and the informal market can co-exist with it. Night markets or weekend markets are good examples of it. This creates multifunctional spaces. Temporary setups, movable stalls, and collapsible kiosks allow informal markets to take place without disrupting the spatial design of the place. Therefore, there is a need for more flexible and adaptable urban design. New planning policies and regulations in favor of informal markets are required. Declaring vendor zones can ease legal conflicts. As mentioned above, basic facilities like water systems, drainage, and electricity can be provided for better hygiene of the area. While designing public plazas, more green areas and wider footpaths can help pedestrians as well as increase the number of consumers for the informal markets. Lastly, better infrastructure can help the vendors arrange their stalls more aesthetically, and storage issues can also be managed. 

Case Studies

Dharavi, being Asia’s largest slum, is also a center of the informal economy where many small-scale businesses are running like pottery, imitation jewelry, arts and handicrafts, leather goods etc. It poses a great case of dense population in a small space which organically arranges itself to attract a maximum number of customers. It is studied as an architectural case study and many redevelopment proposals have been made through the years. Some markets also take place seasonally, like the Christmas markets throughout Europe. The central plazas of most European cities are used as multifunctional spaces all year round hosting various kinds of markets like flea markets, farmer’s markets, fast food, Christmas markets, etc. In cities like Nairobi and Kenya, the informal and formal markets are designed to coexist. It reflects how pensive urban design can bring everything together. The informal economy is also popular among tourists, and Bangkok’s floating market is one of them. It introduces the tourist to the local art and culture of the place. These markets utilize natural waterways, blending local traditions with urban commercial activity, creating a unique model of informal economic integration. Bogotá has formed policies and allocated vending areas to formalize the informal markets. These bazaars are located near transit hubs but in a designed way so that they do not cause traffic or be harmful to the oncoming traffic.

The Role of Architects 

Urban planners and architects play a crucial role in integrating the informal economy into the urban space. They collaborate with the workers by following participatory design methods and designing spaces where informal businesses can co-exist with permanent shops. This includes finding cost-effective and sustainable infrastructure for the informal markets. Keeping in mind that these informal economies should not affect the aesthetics of the urban space negatively. It is vital to promote inclusive design to accommodate all users. When designing for informal economies, the complexities of urbanization and economic disparity are observed. The formal economies contribute to the technology and urbanization of the city while the informal economy contributes to the cultural preservation, creativity and historical essence of the city. Informal economies are adaptable to the needs of their most vulnerable residents.

Architects and urban planners show how to integrate the informal economy and embrace what it has to offer in the city’s urban landscape instead of marginalizing it. Through adaptive urban design, better regulations and participatory planning, the informal economy can be adapted into the urban space very seamlessly. Architects can transform informal economic activities from a challenge into an opportunity for inclusive design and innovation.

Citations: 

1. Chen, M. (2016) ‘The Urban Informal Economy: Towards more inclusive Cities’, Urbanet, 16 August. Available at: https://www.urbanet.info/urban-informal-economy/.
2. Lund, F. and Skinner, C. (2004) ‘Integrating the informal economy in urban planning and governance: A case study of the process of policy development in Durban, South Africa’, International Development Planning Review, 26(4), pp. 431-456. Available at: https://www.liverpooluniversitypress.co.uk/doi/10.3828/idpr.26.4.5.
3. UN-Habitat (2020) Enhancing Productivity in the Urban Informal Economy. Available at: https://unhabitat.org/enhancing-productivity-in-the-urban-informal-economy.
4. Brown, A. (n.d.) ‘The Urban Informal Economy’, UN-Habitat. Available at: https://unhabitat.org/the-urban-informal-economy-alison-brown.
5. Roever, S. (2016) ‘Informal Work and Sustainable Cities: From Formalization to Reparation’, International Journal of Urban and Regional Research, 40(4), pp. 745-757. Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7500398/.
6. C40 Cities (n.d.) ‘How to support informal workers and economies in a just transition’. Available at: https://www.c40knowledgehub.org/s/article/How-to-support-informal-workers-and-economies-in-a-just-transition?language=en_US.
7. Brown, A. (2015) ‘Enhancing Productivity in the Urban Informal Economy’, WIEGO. Available at: https://www.wiego.org/wp-content/uploads/2019/09/WIEGO-productivity-urban-informal-economy.pdf .
8. Brown, A. (2015) ‘Urban Crises and the Informal Economy: Surviving, Managing, and Transforming’, UN-Habitat. Available at: https://unhabitat.org/sites/default/files/documents/2020-02/urban_crises_and_the_informal.pdf.
9. Brown, A. (2015) ‘The Urban Informal Economy’, UN-Habitat. Available at: https://unhabitat.org/the-urban-informal-economy-alison-brown.
10. Lund, F. and Skinner, C. (2004) ‘Integrating the Informal Economy in Urban Planning and Governance: A Case Study of the Process of Policy Development in Durban, South Africa’, International Development Planning Review, 26(4), pp. 431-456. Available at: https://www.researchgate.net/publication/250276738_Integrating_the_Informal_Economy_in_Urban_Planning_and_Governance_A_Case_Study_of_the_Process_of_Policy_Development_in_Durban_South_Africa.
11. Brown, A. (2015) ‘The Informal Economy in Urban Africa’, ResearchGate. Available at: https://www.researchgate.net/publication/342932148_The_informal_economy_in_urban_Africa.

Images: 

1. Berlin Flea market. [Photograph] (https://www.the-berliner.com/berlin/best-flea-markets-in-berlin-trodel-treasure-troves/ )
2. Keitma. Get ready for some spicy gochujang in South Korea. [Photograph] (https://www.thrillist.com/travel/nation/best-night-markets-around-the-world )
3. Hamburg Christmas Market. [Photograph] (https://www.frasershospitality.com/en/germany/hamburg/fraser-suites-hamburg/city-guide/hamburg-christmas-market/) 
4. Dharavi Leather Market. [Photograph] (https://magicalmumbaitours.com/best-time-to-visit-dharavi-market-for-an-authentic-mumbai-experience/ )
5. Portland Farmers Market. [Photograph] (https://www.travelportland.com/attractions/portland-farmers-market/ )
6. Street shopping in Ahmedabad. [ Photograph] (https://www.tripoto.com/ahmedabad/trips/street-shopping-in-ahmedabad)