Giving the Informal Economy a Voice in Planning Processes

In the first of a new series of articles tackling urban livelihoods, Caroline Skinner explains why the informal workforce matters, and offers six strategies for developing more inclusive urban planning processes.

2 minute read

October 24, 2012, 11:00 AM PDT

By Erica Gutiérrez


Despite the myriad contributions informal workers make to the economies of urban areas in developing countries, the norm is to exclude this sector from effective participation in policy-making and planning, asserts Skinner. She enumerates several widely unrecognized ways that informal activities contribute to local economies, such as alleviating poverty in the most marginalized city areas, while leaving behind a smaller carbon footprint. Informal activities also provide "low-cost inputs, goods, and services" to other enterprises, while using "less space and fewer resources."

2012 International Labour Organization (ILO) and Women in Informal Employment: Globalizing & Organizing (WIEGO) statistics show that "informal employment in developing regions accounts for between 45 percent (in the Middle East and North Africa) and 82 per cent (in South Asia) of non-agricultural employment", says Skinner, and although informal incomes tend to be quite low, when examined as a whole, they significantly impact national gross domestic product (GDP), averaging 41 per cent in the case of 16 Sub-Saharan countries.

Despite their contribution, informal activities are more often than not seen as undesirable, especially to cities seeking "world class" status. Skinner proposes six priorities to help cities address this policy dilemma: (1) providing housing that can support livelihoods, basic services and transportation, (2) securing access to facilities and infrastructure, (3) pursuing legal reform that recognizes the needs of informal employment, (4) guaranteeing access to support and financial services, (5) a consideration of how privatization affects informal workers and finally, (6) the inclusion of informal workers in decision-making processes.

In driving the last priority point home, Skinner concludes, "It is a matter of planning with rather than planning for informal workers."

Tuesday, October 23, 2012 in The Global Urbanist

View form second story inside Southdale Mall in Edina, Minnesota with escalators and model cars parked on downstairs floor.

The Mall Is Dead — Long Live the Mall

The American shopping mall may be closer to its original vision than ever.

March 21, 2024 - Governing

View of Austin, Texas skyline with river in foreground during morning golden hour.

The Paradox of American Housing

How the tension between housing as an asset and as an essential good keeps the supply inadequate and costs high.

March 26, 2024 - The Atlantic

Houston, Texas skyline.

Report: Las Vegas, Houston Top List of Least Affordable Cities

The report assesses the availability of affordable rental units for low-income households.

March 22, 2024 - Urban Edge

Aerial view of Anchorage, Alaska downtown with mountains in background at golden hour.

Anchorage Leaders Debate Zoning Reform Plan

Last year, the city produced the fewest new housing units in a decade.

4 hours ago - Anchorage Daily News

Young man in wheelchair crossing zebra crosswalk.

How to Protect Pedestrians With Disabilities

Public agencies don’t track traffic deaths and injuries involving disabled people, leaving a gap in data to guide safety interventions.

5 hours ago - Governing

Aerial view of mountain town of Steamboat Springs, Colorado in the winter with snow at dusk.

Colorado Town Fills Workforce Housing Need With ‘Dorm-Style’ Housing

Median rent in Steamboat Springs is $4,000 per month.

6 hours ago - CBS News

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.