Urban informal economy
Understanding the informal economy is critical if one wants to better understand the political, economic and social ecosystem around rural and urban interlinkages. Informal workers in developing countries face economic, institutional and social constraints, such as corruption, inefficiency of the production process and barriers, such as red tape and burdensome legislation, preventing them integrating into the formal economy. When the formal labour market cannot provide a livelihood to those wanting to work, the informal sector offers a refuge for workers, even in emerging countries. Instantly eliminating informal economies can worsen socioeconomic disparities. It will disrupt livelihoods of the people, including the most vulnerable groups. Cities will need to effectively engage and integrate informal players into their urban planning and policy interventions.
