How the Informal Economy Can Build Resilience

Building sustainable, equitable cities of the future, must take into account the important and often overlooked tasks performed by informal workers.

2 minute read

October 4, 2023, 8:00 AM PDT

By Diana Ionescu @aworkoffiction


Two sanitation workers wearing yellow and green vests workin in trash dump in developing country.

olga_demina / Adobe Stock

In a blog post for the International Institute for Environment and Development (IIED), Sonia Dias outlines how cities can harness the power of informal workers to build resilience and economic diversity, particularly in countries where informal economies are a thriving part of the local economy. “Recognising street vendors, domestic workers, home-based workers and waste pickers by acknowledging their key role in urban economies and their co-production of urban plans, will help create cleaner, greener, socially responsive, vibrant, and ultimately resilient cities.”

As Dias explains, the Women in Informal Employment: Globalizing and Organizing (WIEGO) research policy network has released a roadmap called Rights to the City that charts a set of principles that “envisions cities with diverse and inclusive economies that ‘safeguard and ensure access to secure livelihoods and decent work for all inhabitants.’”

These principles include “Recognition that most informal activities are legitimate efforts by the urban poor to forge their livelihoods in often hostile policy environments,” “Regulations that enable access to public space and natural resources for informal livelihood activities,” and “Provision of basic infrastructure and transport services in informal settlements and informal workplaces.”

“The ability of cities to withstand shocks and crises is predicated by the ability of communities, informal settlements and different sectors of the economy – including informal ones – to prepare, react, resist and bounce back.” To this end, Dias writes, “Recognition and strengthening of informal economies may be a key way to increase urban resilience.”

Monday, October 2, 2023 in International Institute for Environment and Development

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 21, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

Two Rivian trucks charging at Rivian branded charging ports.

US Senate Reverses California EV Mandate

The state planned to phase out the sale of gas-powered cars by 2035, a goal some carmakers deemed impossible to meet.

1 hour ago - CALmatters

Metal U.S. Geodetic Survey marker in stone in Arizona.

Trump Cuts Decimate Mapping Agency

The National Geodetic Survey maintains and updates critical spatial reference systems used extensively in both the public and private sectors.

2 hours ago - Wired

Close-up of 10 mph speed limit sign.

Washington Passes First US ‘Shared Streets’ Law

Cities will be allowed to lower speed limits to 10 miles per hour and prioritize pedestrians on certain streets.

3 hours ago - The Urbanist